Can a borrower mortgage their property after Bankruptcy? Absolutely. Once they’ve been discharged, even though the bankruptcy will likely stay on their Credit Bureau for a number of years, it doesn’t matter to private lenders much.
However, you’ll want to be prepared for the questions the lender will ask. Before you submit the file, create a narrative for the lender about why the client went bankrupt, and how their current situation will ensure that it doesn’t happen again. In other words, that it was a 1-time anomaly.
There is no minimum amount of time that needs to pass after bankruptcy discharge. We can literally finance the day after they’re discharged.
Consider adding bankruptcy trustees to your marketing contact list. They can be a good source of new deals.