After Bankruptcy Mortgage Refinance
Categorized: business | 1 comment
If you’ve recently gone through the personal bankruptcy process or even if you are just thinking of filing a claim, there are probably some questions you have about life after bankruptcy. One of the most common questions involves the debtor’s ability to retain financing post-bankruptcy. Specifically, people often ask whether or not it’s possible to attain and after bankruptcy mortgage refinance or even a brand new mortgage. Perhaps the reason that this question is so commonly asked has to do with the fact that the bankruptcy process can take an enormous toll on an individual’s credit rating. Essentially, claiming bankruptcy will take a borrower’s credit rating down to almost nothing, making it nearly impossible for them to secure any form of desirable financing for a several year period. So, is it possible to attain a mortgage after bankruptcy? The following article will provide you with the answer.
Regardless of what you may have heard, it is possible to get a mortgage after bankruptcy, though there are a few caveats that are worth mentioning. For one, you must wait at least 2-3 years before applying, which will give you enough time to start the credit rebuilding process. A reputable lending institution won’t touch a borrower fresh out of bankruptcy with a 10-foot poll, so don’t even think about applying right away. Instead, take a couple years to rebuild your credit by setting up a secured credit card, which is essentially like borrowing money from yourself. Even though a secured card isn’t quite the same as a “traditional” card, your credit score can be improved by making sustain, on-time payments toward it.
The other thing that’s important to understand when applying for a mortgage after bankruptcy is that you likely won’t end up with an extremely desirable loan. Instead, you should be prepared to accept rather harsh terms of relatively high interest rates. If you are willing to accept these terms, then you can be well on your way to owning a home even after going through the personal bankruptcy process.
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on January 9, 2011 at 8:16 pm