- Funny thing is, I’ve seen lenders get way more hung up on a 10-year-old bankruptcy than a late payment from last year.
- I always wonder if their systems weigh “serious” events differently, or if it’s just a checkbox thing.
- Anyone ever have an old foreclosure come back to haunt them, even after years of solid credit? That’s happened to me and it never really made sense.
I’ve seen this play out with clients more times than I can count. It’s wild—sometimes a lender will zero in on a bankruptcy from a decade ago, even if the person’s had spotless credit since. Meanwhile, a recent late payment just gets a shrug. I’ve had buyers who were sure their old foreclosure was ancient history, but then it pops up and suddenly they’re getting grilled about it all over again.
From what I’ve noticed, it’s not always about the numbers or the timeline. Some lenders have these rigid checklists, and if you tick the “foreclosure” or “bankruptcy” box—even if it’s ancient—they get nervous. Others seem to care more about patterns and recent behavior. It can feel pretty random, honestly.
One client of mine had a foreclosure from the recession days, but had rebuilt their credit to the 700s. Still, some banks just wouldn’t budge. Ended up going with a smaller lender who looked at the whole picture, not just the old black mark. Sometimes it’s just about finding someone willing to see you as more than your credit report.
I’ve run into this myself—honestly, it’s kind of a mystery how some lenders make their decisions. I had a bankruptcy from way back, like over ten years ago, and I figured it was ancient history. But when I started house hunting, a couple of banks acted like it happened last week. Meanwhile, my friend had a recent late payment and barely got a raised eyebrow. It’s almost like some places just see “bankruptcy” and hit the panic button no matter what else you’ve done since. Ended up going with a credit union that actually talked to me like a human... go figure.
Title: Does an old bankruptcy matter more than a recent one?
That’s been my experience too—sometimes it feels like the word “bankruptcy” just triggers a knee-jerk reaction, regardless of how much time has passed or what your current financial picture looks like. I’ve seen lenders weigh old bankruptcies more heavily than recent late payments, which doesn’t always make sense to me. Every bank seems to have its own internal logic (or lack thereof). Credit unions and smaller lenders do seem more flexible, maybe because they actually take the time to look at the whole story. It’s frustrating, though... you’d think credit history would be more about the full picture, not just one old mark.
I get where you’re coming from, but I’ve actually seen the opposite in a lot of cases. Most lenders I work with seem to care more about recent stuff—like if you’ve had a late payment in the last year, that can be a bigger red flag than a bankruptcy from, say, 7 or 8 years ago. Maybe it depends on the type of loan or even the underwriter’s mood that day... but I wouldn’t say old bankruptcies always outweigh newer issues. Anyone else notice that?
