Posts Tagged bankruptcy home mortgage
The Bankruptcy Mortgage: Learning to Overcome Your Financial Difficulties
Posted by Kate in Bad Credit Mortgages, Bankruptcy on October 31, 2009
If you want to obtain a bankruptcy mortgage, you will probably have to wait if you’ve been recently discharged from your debt obligations. Most lenders who offer programs for bankruptcy mortgage loans will not consider you for this type of loan for a period of two years after bankruptcy. Nonetheless, if you can demonstrate a near perfect record with regards to paying your bills on time and can provide a down payment of around 5%, then a lender may look favorably on your application for securing a bankruptcy mortgage loan.
Patience is a Virtue
However, if you’re like most people, you’ll probably have to wait it out and apply to one of the programs that offer mortgage loans for bankruptcy after the two-year period. At that time, you can normally finance a loan for 100% if you’ve demonstrated that you’ve made all your payments and as a result increased your credit score.
Down Payment Alternatives
If, at the time of the application for a bankruptcy home mortgage you don’t have the money for a down payment, there are programs that can assist you with your down payment. In addition, grants are available that are available that do not require repayment. Searching online can give you a better idea of the specific bad credit mortgage loan programs that are provided in this regard.
Establish a Routine
That said, it’s still important that you make the effort to show a potential lender that you’re a good payer. Therefore, after you’re discharged from your bankruptcy, you’ll need to make some significant changes in the way you spend your money. Establish a savings plan as well as make it a habit to pay each of your debts on time. Do not apply for any further credit or loans. Take care of the obligations already in force. By demonstrating you’ve developed a routine of conscientiously paying your debts and saving your money, you can turn your financial situation around in your favor.
It’s all in the Past
Lenders who provide bankruptcy mortgages want applicants who have a proven history of reliability with respect to their credit. Therefore, start initiating a plan to remove the stigma of bankruptcy once and for all.
Put your Best Financial Foot Forward
When you get to the point of applying for a bankruptcy mortgage loan, you’ll want to view your payment history and credit score as a lender will. Have the payments been made on a regular basis? Have there been any late pays or no-pays? How many times has the applicant applied for credit? How many inquiries have been made in this regard? Inquiries will lower your score so you have to be careful when applying for any credit or loans. Present yourself in a way and with the qualifications that you know a lender who provides bankruptcy mortgage loans can’t dispute. By altering your behavior and learning to discipline yourself, you can easily obtain a bankruptcy home mortgage for you and your family.
photo credit: BLW Photography
There is Life after Bankruptcy: The Bankruptcy Mortgage Loan
Posted by Kate in Bad Credit Mortgages, Bankruptcy on October 30, 2009
If you’ve filed bankruptcy, you may be unsure about how to proceed with respect to obtaining a bankruptcy mortgage. It can indeed seem like an overwhelming undertaking to make the effort to secure such a loan when you have a financial history that reflects negatively on your ability to repay. Nonetheless there are programs available for people who’ve gone through these types of financial crises which offer them a second opportunity to see their way clear with a bankruptcy mortgage loan. So, what should you do to make sure any of the lenders that offer programs for bankruptcy mortgage loans will look favorably on you as a borrower? Well, you have to prove you’re a good risk. This may seem like a tall order when you’ve displayed by your past financial record the exact opposite. However, it has been and can be done. Therefore, you must make an effort to rectify your financial situation every way you can.
Financial Management
It normally takes about two years for a person to regain their financial standing after bankruptcy. Therefore, during that time it’s important for you to make a conscientious effort to make regular payments on the debts you currently hold, establish a savings plan and review and remove any errors on your credit report. This way you can start building your credit and proving yourself to potential lenders that you will be a good future risk to pay back a loan. Therefore, there is no reason to despair over qualifying for a bankruptcy home mortgage. It can be done if you will change your spending and saving habits and persevere. By doing so, you will be able to qualify for a bankruptcy mortgage and have more control of your financial future.
Make your Payments on Time
Therefore, it’s imperative you make timely payments on all your current debt obligations as well as eschew any more credit or loans. Concentrate on managing what you already have in the way of financial obligations. Keep the amount of inquiries on your credit report to a minimum as well as this can further lower your credit score. Your goal is to rebuild your credit and therefore increase your score. Thus, it’s essential you do everything you can in order to meet this goal. Lenders like to see someone regularly meet their expenses and satisfy their debts. Do what needs to be done in order to accomplish this and you’ll be able to obtain a bankruptcy mortgage loan without difficulty.
Review your Credit Reports
When you feel you’re ready to apply to one of the programs that offer bankruptcy mortgages, get a head start in the process by securing your credit report from each of the three credit reporting agencies. Look and compare the three reports to make sure that each is correct. If you find any errors, seek to correct them as soon as possible before becoming involved in the loan process.
How you File Bankruptcy makes a Difference
You’re in a better position to obtain any of the mortgage loans after bankruptcy if you filed Chapter 13 Bankruptcy versus Chapter 7. Chapter 13 Bankruptcy includes the provision that you are still working at paying off your debt or the intention is there. Chapter 7 Bankruptcy absolves you from any further liability with respect to certain obligations; therefore, a potential lender will usually not look favorably on this type of bankruptcy as it shows you did not or could not pay back your creditors.
A Goal for the Future
As stated, before trying to apply for a bankruptcy home mortgage, you should make every effort to build your credit score by making timely payments and establishing a regular savings plan for a period of about two years. In order to overcome the stigma of bankruptcy, you’ll need to concentrate in demonstrating to any potential lender that you can be financially reliable. It’s important to do if you wish to have a future that is secure for your family.
photo credit: box of lettuce