New changes to Bankruptcy as of Aug 1

Effective for applications dated on or after August 1, 2008: 

2-years elapsed time after discharge of bankruptcy and re-established credit since discharge of bankruptcy. 

4-years elapsed time after dismissal of bankruptcy and re-established credit since dismissal of bankruptcy. 

Extenuating circumstances: 2-years elapsed time after dismissal of bankruptcy and re-established credit after dismissal if resulted from extenuating circumstances . 

Borrowers with more than one bankruptcy in the past 7 years 

5-years elapsed time after most recent dismissal or discharge of bankruptcy and re-established credit since most recent dismissal or discharge of bankruptcy. 

Extenuating circumstances: 3-years elapsed time after most recent discharge or dismissal of bankruptcy and re-established credit after most recent discharge or dismissal if resulted from extenuating circumstances . 

Note: Most recent bankruptcy must have been the result of extenuating circumstances. 

If AUS is utilized, refer to findings and loan product description for seasoning requirements. 

FHA: 

At least 12 months satisfactory plan payments and court approval obtained. 

VA: 

Satisfactory completion of plan payments and borrower has re-established credit, OR 

At least 12 months of payment plan must have been made and trustee/bankruptcy judge approval obtained.

I know there are many things we have to watch in order to make life the best that we can.  We need to watch out for the unexpected that come along.