My husband bought a house 6 years ago. I married him 5 years ago then we refinanced adding me to the loan (we got 5.875%).
We are now trying to get a commercial real estate loan, but the application is asking if either of us has ever filed bankruptcy. It was almost 12 years ago. I thought it would drop off of your credit in so many years.
Do I need to be honest about this?
Can they use this against us?
I will be listed as the co-applicant.
Any advice is appreciated.
Our credit is impeccable!
Of course you need to be honest–they are going to find out anyway! besides, after 11 years, hopefully it has been discharged.
Others will tell you they only go back 7 years and I am here to tell you that’s a big fat lie. I know this from personal experience. Also, since legally they are not supposed to hold it against you after that time, they don’t have to tell you that’s the reason you were denied a loan.
Good luck!
nope the statute of limitations is up, don’t even mention it, they can only hold it against you for 7 years.
GOOD LUCK!
You do not have to list it. It should be off your credit by now and you do not have to list it.
Most lenders only go back 7 years.
You need to be completely honest about past bankruptcies. They do not automatically disqualify you for a loan, but dishonesty does. Read the question carefully. If it asks whether you have ever filed for bankruptcy with out including a phrase like "in the past seven years," you should answer truthfully.
Ignore the nonsense about a "statue of limitations." There’s no such thing in this context. A statute of limitation sets a time limit beyond which a person cannot be prosecuted for a crime committed in the past.
if your credit is impeccable it shouldnt matter but if they asked this question they will probably do a background check and find out anyway so you best tell them
I would be honest since if they were to find out independently (which is fairly easy with a credit check), you would be in a much worse situation. Although it will probably count against you, any reasonable and rational creditor will see that it is far in the past and focus on recent history.
I agree, don’t mention it, the limitation is ten years and it should be off you credit report now. Get a free copy of your credit report. Go to http://www.freecreditreport.com. If it still remains, they need to get it off, you’ll need to contact them. Do this be for you apply for your new loans.
Yes, you need to answer the question correctly. To do so otherwise is mortgage fraud, which can involve financial penalties and/or jail.
It’s still in your credit history and in public records, even if it doesn’t show on your credit report anymore.
Mortgage companies are starting to look much more closely at applications, given the fraud that has been occurring lately, so don’t chance it.
It is a crime to lie on a loan application. ALWAYS tell the truth or you could be in trouble BIG TIME.
Yes , I would tell them . If your credit is now what you say it is , they will see that ,everyone at one point or other ,may have had problems with money , and they no that .
And besides Bankrupt is legal , so its not like you did something you shouldnt have done .
Now adays you can get loans even if you had bankrupt , its just a matter of paying a high interest , if it was just a matter of years , but in your case , its been awhile .
So yes !!!!!!! Be honest , if its meant to be you will get it .
Get a copy of your credit report. If it does not show up then don’t use it, but if it does tell them. They will see it anyway. You can get it for free from annualcreditreport.com. good luck
I had a close relative that said no on a form like that when he should have said yes. His bankruptcy was also more than a decade in his past. Later on when he ran into difficulty with the loan-they charged him with bank fraud and said he would be going to prison!
Thank God he was allowed to stay out of prison, but that question needs to answered truthfully!
You need to be honest. Read the fine print where you sign, you are signing that the information you provided is TRUE. You are being fraudulent otherwise. One that long ago will not be held against you, but fraud will and is legal grounds to call in your note early (demand full payment) if they discover it after the fact. Your entire history never disappears, it is available.