Kissimmee, FL asked in Bankruptcy and Real Estate Law for Florida

Q: Do I qualify for 1st time homebuyer if I wanted to purchase a 2nd property although I live in my bankrupted home?

My bankruptcy was discharged 9 yrs ago & I did not reaffirm my mortgage. I continue to live in the home and made all pmts timely w/APR 4.625%. My credit is in the mid-700s but lacking variety due to no mortgage debt. Although the obligation was removed, I missed the opportunity to demonstrate my perfect payments over the past 9 years! The lender has no interest in taking my home and the balance can be paid off if there was an immediate need to (65K). Few questions please: 1) Do I qualify as a 1st time homebuyer for an FHA or conventional loan if I wanted to purchase another property (regardless if I sell the current one)? 2) Should I refinance my current home to take advantage of lower interest which by calc could reduce the pmt by $65/month and get it added to my credit profile? 3) Does the overall benefit of the release of the debt obligation outweigh the benefits of adding a different type of debt with a manageable balance, and timely payments?

Related Topics:
2 Lawyer Answers
Richard Paul Zaretsky
Richard Paul Zaretsky
  • West Palm Beach, FL
  • Licensed in Florida

A: Is this the first house you are buying? Sounds like it is not. Therefore you are not buying a first home.

If you want to keep this home, that still has a mortgage on it, then refinance the mortgage at today's low interest rates.

Lastly, I don't understand the last question. Anything you do with a new mortgage as long as you pay on time, will improve your credit in the future.

Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY

A: 1. No. You are not a first time buyer.

2 and 3 need to be answered by a qualified bankruptcy practitioner after fully assessing your complete financial situation.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.