Getting A Mortgage After Chp 7: Things You Need To Do

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Going through a chapter 7 can seem to take forever. Before you can get back on the real estate ladder the bankruptcy must be fully discharged by the court. In addition before you apply for any new home loan ensure that you have full control of your finances and for example are not part of some enforced credit program. Even if your chapter 7 has not been finalized there are many things you can be doing in order to prepare yourself.

One of the most important things you need to start doing straight away is to start saving for a down payment. The larger the down payment you have the easier you will find it to get a deal. If you have a down payment as large as say 15% then you should be able to get accepted for a home loan within days after bankruptcy. This is far better than waiting for 2 years, then applying for a mortgage to find that the lenders still classify you as a sub prime borrower.

You may find that the value of your home means you have enough equity so that you can refinance almost straight away after bankruptcy. If you do, take the opportunity.Did you recently file for Chapter 7 or Chapter 13 bankruptcy and need a mortgage refinance loan? There is no question that filing for bankrupcty negatively impacts your credit file. Whenever you apply for a mortgage loan, credit card or even a small unsecured personal loan, your potential lender pulls your credit report.

Having a bankrupcty or chargeoff on your credit report is a red flag that tells the lender that you are likely not to pay back your loan. Can you refinance your mortgage loan after bankruptcy? The quick answer is “yes”. You can get a home equity loan, HELOC or a cash out refinance loan, even after bankruptcy. When you filed for Chapter 7 bankruptcy, chances are, you were able to keep your home. These cases include, child support, taxes, student loans, fines and restitutions imposed by courts.

Going through a chapter 7 can seem to take forever. Before you can get back on the real estate ladder the bankruptcy must be fully discharged by the court. In addition before you apply for any new home loan ensure that you have full control of your finances and for example are not part of some enforced credit program. Even if your chapter 7 has not been finalized there are many things you can be doing in order to prepare. One of the most important things you need to start doing straight away is to start saving for a down payment.

The larger the down payment you have the easier you will find it to get a deal. If you have a down payment as large as say 15% then you should be able to get accepted for a home loan within days after bankruptcy. Naturally you will not get the best deal by getting a mortgage straight after bankruptcy, however by having a mortgage and making your repayments you will be building your credit score back up so much so that after about 12-24 months you should be able to refinance and get a regular home loan.

This is far better than waiting for 2 years, then applying for a mortgage to find that the lenders still classify you as a sub prime borrower. You may find that the value of your home means you have enough equity so that you can refinance almost straight away after bankruptcy. If you do, take the opportunity.Did you recently file for Chapter 7 or Chapter 13 bankruptcy and need a mortgage refinance loan? There is no question that filing for bankrupcty negatively impacts your credit file. Can you refinance your mortgage loan after bankruptcy?

The quick answer is “yes”. You can get a home equity loan, HELOC or a cash out refinance loan, even after bankruptcy. When you filed for Chapter 7 bankruptcy, chances are, you were able to keep your home. If you are one of the lucky ones, who lives in a state like Florida, California, Nevada or a number of other states that ha
ve seen significant appreciations in home property values – you may have anywhere from 5% to 50% equity in your home. These cases include, child support, taxes, student loans, fines and restitutions imposed by courts.

If you still have student loans or taxes to pay – there is no better time to tackle them, than now. Give yourself the gift of starting fresh. You can get a mortgage refinance loan, literally the day after your Chapter 7 bankrupcty is discharged. You don’t have to wait for any specified time period. You will need to find subprime mortgage refinance loan lenders, who specialize in cash out refinances, home equity loans and HELOCs for a mortgage program that is suitable for your credit score – be it 450, 480, 500, 550 or.

With a chapter 7 bankruptcy, the bankruptcy will fall off of your credit report after seven years. The same is true with a chapter 13 bankruptcy. That is only if it is been discharged. On the other hand, if you have had a bankruptcy that has been dismissed then it will stay on your credit report for 10 years. Not 10 years from the date that you file for bankruptcy, but 10 years from the date of the dismissal. Cash out your equity and find lower rates. You can also lower your.

Payments by extending your loan term. Two years after your bankruptcy has. Been discharged, you may qualify for conventional rates. If you need a. Refi loan sooner, you can find a sub-prime lender to work with you. Most financial advisors will counsel you to wait two years before. Applying for a new loan. Within those two years, you can reestablish your. Credit score to good standing and qualify for a Fannie Mae loan with. Market rates. However, you can find refinancing sooner by working with a sub-prime. Lender. Depending on your credit score, cash assets, and income, you can.

Find a financing package only a couple of points higher than. Conventional rates. Before you apply for a refi loan, check your credit report to be sure. That your bankruptcy was properly discharged. Make sure accounts are in. Good standing and have accurate information. You can also include a. Letter explaining the circumstances of your bankruptcy, which can help. Your loan application. Also, take the time to research lenders. Just like with any product, Shopping around will guarantee that you get the best deal. It just takes. A few minutes to receive loan quotes online.

<p>You can review them at home with no pressure. While you are looking at rates, also note fees. Closing costs. If you didn’t get the best terms or rates on your first mortgage, now. Is the time to find them. The lowest payments, choose an adjustable. Rate mortgage. Usually for the first two to five years rates will be. Lower than fixed rates. Some lenders will also allow you to lock in a rate for a fee.

Your pre-bankruptcy filing creditors won’t have a claim on your property acquired after you’ve filed for bankruptcy. Companies Do Buy Your Chapter 13 Bankruptcy. Don’t worry, there are mortgage companies that buy your chapter 13 bankruptcy and allow you the cherished opportunity to buy your home. However, it is you who has to look into certain aspects of going in for a mortgage after bankruptcy. First of all, two years past your Chapter 13 bankruptcy, your credit score stops being adversely affected. If it is a viable option for you to wait for two years, it will be great.

Filing bankruptcy will impact your credit score. A low credit score means that you have to pay more in interest rates. To prevent this, you will have to make a higher down payment. After bankruptcy, you also have an option of asking a relative to co-sign in the mortgage with you or give a gift of money so as to increase your down payment.Many consumers with poor credit do not even consider buying a home after bankruptcy. While a bankruptcy does remain on your credit report for up to ten years, this does not mean you cannot seek credit during the entire ten-year time frame.

If you’ve had a Chapter 7 bankruptcy, in order t
o qualify for these types of lending opportunities, you have to have your bankruptcy completely discharged or dismissed by the courts. What this means is that the 341 meeting of creditors needs to be completed with no more court dates pending relating to the bankruptcy. 

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