obtaining a mortgage while undischarged from Bankruptcy

March 3rd, 2011 by Questions

I went bankrupt in August and have not yet been discharged from Bankruptcy. Can I purchase a home from the bank while I am not yet discharged? The home is for a very small amount and I want to approach the bank, however, I wanted to make sure this is something I am allowed to do while undischarged from bankruptcy. Am I allowed to obtain a mortgage? thank you!

Posted from: Ontario

Questions

One Response to “obtaining a mortgage while undischarged from Bankruptcy”



March 03, 2011 at 7:50 am, A licensed trustee said:

As long as you disclose to the mortgage company that you are an undischarged bankrupt, you will not be breaking any rules/laws if you apply for a mortgage while you are in your bankruptcy.

Having said that, I don’t want you to be hopeful that you will be approved. Mst financial institutions will not approve you for a mortgage until you have been discharged from your bankruptcy for at least 2 years. Any companies that will approve you will charge very high interest and require a co-signer.

Please be VERY careful – it will probably be better to wait thasn to deal with one of the high interest lenders.

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