Banruptcy Question on Mortgage Applications
Mortgage application section VIII declarations
I was discharged from a chapter 13 bankruptcy. It has been over ten years and does not show up on my credit report. I have built my credit score up to the mid 700's. My questions are;
1) Do all mortgage applications ask about prior bankruptcy filings?
2) Do mortgage lenders check PACER (or sites like PACER) for past public records?
3) And for the big question.....if I have to answer a question (lie) about bankruptcy and it does not show up on my credit report, will the mortgage company investigate my past public records without a reason from the credit report?
Thank you for coming by my website and asking your questions. These are some very good questions I might add.
In answer to #1, yes they do ask for any past bankruptcy filings. However as you can see in my snapshot of the loan application they are only concerned about the past 7 years. So you could honestly answer "No" in the declarations section of the loan application. You will find this on page 3 of Fannie Mae form 1003.
Since it does not show on your credit report and you will be saying "No" about bankruptcy in the last 7 years, in answer to #2 & #3 I would say they will not research you in any public records.
I do want you to know that the lender reserves the right to do any background research they want to.
You just want to be honest on the application and only provide information as needed to the lender. They are more than capable of turning up any concerns they have and will be asking you questions if they have any problems.
My guess would be you should have no problems since your credit score is good. If you have income and are not carrying a lot of debt so it does not mess up your DTI (debt to income) ratio you should be fine everything will work out.
If you want to apply online for a mortgage you can visit a page on my site here. Or contact a lender in your area.
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