Posts Tagged mortgage loans after bankruptcy
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
How to Learn from your Past Credit Mistakes: Obtaining a Bankruptcy Mortgage
Posted by Kate in Bad Credit Mortgages, Bankruptcy on October 29, 2009
It goes without saying, sometimes it’s hard to believe you can ever recoup what you’ve lost when you file bankruptcy. Nevertheless, it is possible to obtain a bankruptcy mortgage. You just have to understand the process in order to obtain a bankruptcy mortgage loan and do what you can to regain your hold financially. Let’s look at how filing bankruptcy affects your status as far as obtaining any mortgage loans after bankruptcy.
Chapter 13 vs. Chapter 7 Bankruptcy
Much depends on whether you filed Chapter 13 or Chapter 7 Bankruptcy as to how you will proceed in obtaining any future bankruptcy mortgage loans. For example, when you file Chapter 13 Bankruptcy you typically can salvage your home from foreclosure’s wrecking ball. Therefore, you are indeed a candidate for any future bankruptcy home mortgage.
However, if you opt for filing Chapter 7 Bankruptcy proceedings, because you are fully discharged of your debts, in all likelihood, you may not be able to keep any real estate you own as well. In order for this not to happen, a “Reaffirmation Agreement” is usually filed. This way you can work with the mortgagor to pay off your debt on your property.
Given the above information, what do you have to do to obtain a bankruptcy home mortgage?
Re-establish Your Credit Standing
Any of the bankruptcy mortgages offer someone who is a sub-prime borrower the opportunity to make restitution for their past credit mistakes. Therefore, the first thing you must concentrate on is to re-establish your credit so a lender who is considering you for such a bad credit mortgage has the confidence in your ability to pay back the debt. Make it a point then to make regular payments on the debts you currently have so you can build your credit to a level that can justify securing a loan.
Formulate a Budget
To get into the practice of making regular payments, you will have to form a budgetary plan and make every effort to stick to it. Don’t fall back into the pattern that got you into a bad credit situation in the first place. Learn from your past credit mistakes and you can obtain a bankruptcy mortgage that will help you gain a financial record that can’t be erased.
Start Saving
With a bankruptcy history, you will have to realize you won’t be afforded the same privileges you once were from a credit standpoint. Therefore, it’s important to set up a savings plan and learn to discipline yourself financially. By doing so, you can indeed obtain a bankruptcy mortgage loan that will give you the leeway to correct your past credit mistakes and learn to be more prudent in financial matters overall.
The FHA: A Good Resource
Probably the best source to look at with respect to any bankruptcy mortgage loans is the FHA. The FHA has many programs that can assist in helping people with bankruptcy as a part of their financial history.
Review your Credit Report
Learn to save and keep up-to-date on what your credit report says. If there are any inaccuracies, it’s essential you make strides to remove them or correct them right away. By doing so, you will always be on top of your financial situation and therefore in better control of your budget.
Stay Focused
Probably the three most important areas to concentrate on with respect to qualifying for any of the bankruptcy mortgage loans out there are income, your credit score and the down payment. If you start learning to save regularly, paying your debts on a timely basis and making sure that your credit report reflects favorably on you, you can make a new start and see the day when you will overcome any budgetary woes and once again have financial security.
photo credit: n0nick