Mortgage after chapter 7 bankruptcy
Most of the people are still confused whether they can buy a home even if they have had a recent bankruptcy, then the answer would be yes, you can surely buy a mortgage even if you have a bankruptcy. The only annoying thing would be that you will have to pay a higher rate of interest on your mortgage compared to those who did not have a bankruptcy.
However, there are a few choices for you when you plan for a mortgage after chapter 7 bankruptcy. You can easily get your mortgage from a non prime mortgage lender or look out for a Federal Housing Administration loan. Whichever mortgage loan lender you prefer to go with, you should be prepared to produce a clarification for the circumstances of filing for your chapter 7 bankruptcies along with all the documents and the schedules of the debtors. You will also need to re established the credit in most of the cases that would show the mortgage lender that you are now capable of handling all your bills.
It is not important that you should be a novelist to write your bankruptcy explanation letter as your mortgage lender would help you in the process. There are also a number of companies that can easily handle nearly 20-30 people every month with writing their bankruptcy letters. These companies can prove to be beneficial as they are familiar with the format a mortgage lenders would be looking for, so it also make its easy to get a mortgage loan. These companies would just want to know what were the circumstances surrounding your chapter 7 bankruptcy in the terms of a common man.
There are usually two types of personal bankruptcy cases that the mortgage loan lenders deal with. The first is the chapter 13 bankruptcy where all your debts are reorganized over time and are finally paid out and the other is the chapter 7 bankruptcy where all the assets of the debtors are liquidated. Although your tax adviser would give you a much better understanding about getting a mortgage you should probably wait for about two years if you had filed a chapter 7 bankruptcy. However, if you are on the side of having a bad credit score then the best option for you would be finding a mortgage loan lender through the internet which would be comparatively a faster and easier process.
There are chances that you can also refinance your mortgage if you have saved your mortgage property during your bankruptcy process. This would require you to have two years between your bankruptcies for your mortgage refinancing to be approved, but for a chapter 7 bankruptcy the two years would start from the next day your bankruptcy is discharged. However, the mortgage industry has an excellent option to assist you in your mortgage refinancing. A number of mortgage lenders have access to various wholesale lenders who require far less than two years of bankruptcy seasoning. There are also a number of sub prime lenders who would fund you a loan just the day after your Chapter 7 bankruptcy is discharged.
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