Legal Question in Real Estate Law in California

Legality of considering bankruptcy by mortgage lenders

Is it true that home-mortgage lenders are prohibited by law from using a discharged bankruptcy as a criteria for denying a loan?


Asked on 2/28/03, 4:08 pm

1 Answer from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Legality of considering bankruptcy by mortgage lenders

No, that is not correct. A bankruptcy is part of your credit history. Generally, a BK stays on your credit record for 10 years after discharge. Most mortgage companies will not accept someone who has had a BK in the last 2-4 years.

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Answered on 2/28/03, 4:42 pm


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