Bankrupt Borrowing

In your Nov. 21 mortgage quiz (“Putting Your Home Loan Knowledge to the Test” by Earl Peattie), question No. 12 asks, “Qualifying for a sub-prime mortgage after bankruptcy takes about:” and the answer is listed as two to three years.

Qualifying for a sub-prime mortgage needn’t have anything to do with when one filed bankruptcy. I guarantee that a borrower can get a sub-prime loan the day after bankruptcy if the loan-to-value ratio is low enough.

W. SPENCE MITCHUM

Via e-mail

Regarding question No. 12, I was once president of a national mortgage conduit, and in establishing underwriting criteria for securitization we excluded any borrower who had ever filed bankruptcy.

I am not sure that any amount of waiting time would allow previously bankrupt borrowers to qualify for premium quality loan pricing. There may be exceptions, but I don’t think two to three years will get that treatment by lenders.

STEVE KUYKENDALL

Rancho Palos Verdes