As far as the BK13 goes, you will be able to borrower once your BK plan is discharged in 2 or 3 years from that date.  

Borrower Discharged from BK-7 in 2014 in NJ.  

The situation to me seems to be that the bank discharged the debt in bankruptcy court, didn't foreclose on him, and allowed him to keep the property. 

Minimum of 2 years from Chapter 7 or 13 bankruptcy discharge Minimum of 3 years from Preforeclosure, short sale, deed in lieu, foreclosure from discharge date or release date.Down Payment Requirements The borrower is required to make a minimum down payment into the transaction of at least 3.5% of the lesser of the appraised value of the property or the sales price.

Minimum of 2 years from Chapter 7 or 13 bankruptcy discharge Minimum of 3 years from Preforeclosure, short sale, deed in lieu, foreclosure from discharge date or release date.Down Payment Requirements The borrower is required to make a minimum down payment into the transaction of at least 3.5% of the lesser of the appraised value of the property or the sales price.

It's only if the loan gets cancelled, forgiven or discharged that you may have to report it as taxable income (though there are exceptions).

On our seconds we charge simple interest (currently between 7 and 12%) and, depending on the size of the note, will typically charge a full year's interest even if the mortgage is discharged in less time. 

A “fire sprinkler system” is defined in the statute as “a system of piping and appurtenances designed and installed in accordance with generally accepted standards so that heat from a fire will automatically cause water to be discharged over the fire area to extinguish or prevent its further spread.”I'm just posting this as an FYI.

Not even close to having any equity, discharged in bankruptcy, 1st is in default.....sounds like no value to me. 

.- Bankruptcy - 1 - filing date in early 2010 and closed/discharged in mid 2010 - probably linked to above judgement.