Bankruptcy Rules Loosened

Good news for those who have declared bankruptcy. Freddie Mac, a big player in the mortgage industry, will let you out of the dog house just two years after you declare bankruptcy through Chapter 13 or four years after a Chapter 11 bankruptcy.

The new rules, which took effect May 1, mean that you'll probably be able to buy a house just as soon as your finances recover.

You also can qualify for the same short waiting period if you have gone through a foreclosure or given your house to a lender in lieu of foreclosure.

Currently, the waiting period after bankruptcy is 10 years and after foreclosure, seven years.