Mortgage Loans For The Bankrupt
Anybody who wants to have a home of his/her own knows the importance of maintaining a good credit score. For this you need to pay your bills on time, have a low debt to income ratio, etc. I know all this is easier said than done and bankruptcy is not something you will on yourself. A huge combination of factors is responsible for a person going bankrupt.
But can you give up the dream of a home just because you’ve gone bankrupt? So, if you’ve filed for bankruptcy, how does it affect your chances of getting a reasonable mortgage loan? There are several lenders who are eager to offer home mortgages to individuals with bad credit. These mortgages have a higher interest rate, which increases the monthly payment. Another question that needs answering is how long should you wait before you can buy a home? Obtaining a home after filing for bankruptcy is feasible; nonetheless, individuals who have filed must adhere to specific stipulations. To obtain a mortgage after filing a chapter 7 or chapter 13, you must wait at least two years after the bankruptcy is discharged.
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September 12th, 2006 at 11:19 am
Refinancing After Bankruptcy
If your home has equity—current market value above what you owe—then refinancing after bankruptcy is one way to restructure your debt. The home provides tangible collateral for the lender. If you default on the loan, the lender gets the property.
Refinancing your home is smart because you’ll probably get a lower interest rate than on other types of loans. You can also deduct the mortgage interest from your taxable income.
One downside of refinancing is that by drawing on your home equity, you could end up with no equity left when you want to sell the home. And if the home market declines, you could actually owe more on the home than it’s worth.
You can get a free, no obligation quote on a mortgage refinance at Easy Mortgage Refinancing.