Can you get a mortgage after bankruptcy? Bankruptcy is a serious financial event, causing the restructuring of your debts and allows the court to reassess how and who will be repayed. In a bankruptcy, many people lose their homes because they cannot keep the collateral (the home) without assuming the debt (the mortgage loan). After filing for bankruptcy, many people wonder how they can ever get a mortgage loan again, since the record of a bankruptcy stays on a credit report for 7 to 10 years. Follow this bankruptcy advice to rebuild your credit and make yourself attractive to mortgage lenders.
The first step in preparing yourself to be eligible for a mortgage after bankruptcy is to work on your current credit situation. Get a copy of your credit report and ensure that all the accounts that were absolved in bankruptcy are removed from the report. Then, prove to all the lenders out there that your bankruptcy was an opportunity for you to start over financially and pay all your bills on time. If you can show you've had an excellent record of paying on time since your bankruptcy, this can carry a lot of weight with lenders.
Once your post-bankruptcy credit history looks good, factor in your rental history. A strong rental history with no late payments, fees or penalties will look very good to a lender seeking to check out your history of paying for your housing. Keep cancelled checks for rent on hand to take with you when you start to meet with lenders. Experts in bankruptcy advice will advise people to also take in proof of satisfactory accounts, such as car insurance, new credit card payments and even a cell phone account. With 12 months or more of positive payment history from companies such as these, a lender will begin to believe your financial troubles are in the past.
Finally, in order to appear enticing to mortgage lenders in a post-bankruptcy application, save money for a substantial down payment. The bigger the amount you bring to the negotiations, plus outstanding credit history and proof of reliable bill payment will all work in your favor and make it very likely that a lender will offer you a mortgage after bankruptcy.
Bankruptcy has become inevitable for many Americans, and the reason for their debt is often a burdensome mortgage payment. In some cases, people who go bankrupt can hang on to their homes, depending on the type of bankruptcy they file.
Filing bankruptcy without an attorney may be an option if can't afford legal help. You'll be happy to know that you can legally file bankruptcy without an attorney. It takes a lot of effort and knowledge to do so, but it can be successfully done.