I’ve seen buyers get tripped up by stuff that’s ancient history, while others breeze through with newer dings. Do you think it’s more about the underwriter’s mood, or are some lenders just stricter across the board? I’ve had clients with a seven-year-old bankruptcy get grilled, but someone else with a two-year-old one barely got a question. Makes you wonder if there’s any real consistency.
Title: Does an old bankruptcy matter more than a recent one?
Honestly, I've wondered the same thing. It almost feels like a roll of the dice sometimes. I had a friend who filed for bankruptcy ages ago—like, it barely even showed up on her credit report anymore—and she still got hit with all these extra questions. Meanwhile, my cousin had a much more recent one and his lender barely blinked. Maybe some lenders are just way more by-the-book, or maybe it depends on how much risk they're willing to take that day? Either way, it definitely doesn't seem consistent. Makes me double-check every little thing before applying... just in case.
From what I’ve seen, the timing of a bankruptcy really does matter, but not always in the way you’d expect. Most lenders care about how long it’s been since discharge—usually, the older it is, the less impact it has. But some just have stricter policies, no matter what. When I refinanced, my lender focused way more on my recent payment history than the bankruptcy itself. It’s frustrating how much it varies... sometimes feels like a bit of a lottery depending on who you get.
Title: Does an old bankruptcy matter more than a recent one?
Honestly, I’ve seen this play out both ways, and it drives people nuts. Some lenders act like a bankruptcy from seven years ago is ancient history—like, “Oh, you were a totally different person back then, right?” Others? They’ll treat it like you just filed last week, no matter how spotless your recent record is. It’s wild.
I get why folks feel like it’s a lottery. I’ve had clients with a five-year-old bankruptcy and perfect payment history since, and some banks still gave them the side-eye. Meanwhile, another lender barely blinked and just wanted to see that they’d kept up with bills for the last year or two. It’s almost like there’s a secret menu and you never know what you’re gonna get.
One thing I always tell people: don’t underestimate how much your recent payment history matters. If you’ve been on top of things since your discharge, that can really tip the scales in your favor with a lot of lenders. But yeah, there are always those sticklers who just see “bankruptcy” and start clutching their pearls.
I do wish there was more consistency across the board. It’d make life easier for everyone. But until then, it’s kind of about finding the right fit—and sometimes that means shopping around more than you’d expect. Not fun, but at least there’s usually someone out there willing to give you a fair shake if you’ve put in the work since your bankruptcy.
Funny enough, I once had a client who got turned down by three big-name banks but ended up getting a better rate from a local credit union that actually listened to their story. Sometimes the underdog wins... go figure.
I get what you’re saying about recent payment history, but I’ve actually seen lenders get hung up on the *age* of the bankruptcy itself, no matter how good things look now. When we bought our house, one bank flat-out said “seven years or not, it’s still a red flag.” Meanwhile, another didn’t care as long as there were no new dings. Makes me wonder if some places just have hard rules in their system and others leave it up to whoever’s reviewing your file that day. It’s kind of a crapshoot...
