How to Reapply for a Mortgage After Bankruptcy: 9 Steps #prime #interest #rate #today


#bankruptcy mortgage lenders

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How to Reapply for a Mortgage After Bankruptcy

Part Two of Three:
Refinancing Your Home After a Bankruptcy Edit

Look into reaffirming your existing mortgage. This is usually done during your bankruptcy, but can also happened during a post-bankruptcy foreclosure. A mortgage reaffirmation is basically re-signing your original mortgage. Your loan reverts to the original terms, including the interest rate and payments. [8]

  • Reaffirmations are complicated. While it can save your house and mortgage, it can also trigger negative financial consequences. You should not reaffirm a mortgage without consulting with an attorney experienced in real estate and bankruptcy proceedings.

Discover if you are eligible for an FHA streamline refinance. If you originally purchased your home with an FHA loan, you may be eligible to refinance it under the “FHA Streamline Refinance” program. [9] Conventional loans may also qualify for a streamline refinance if you can meet the same standards as anyone applying for a FHA loan. [10]

  • You may be eligible for an FHA streamline refinance 24 months after the discharge of your bankruptcy. The waiting period can be shortened to 12 months if your bankruptcy was a result of extenuating circumstances. For example, if your bankruptcy was the result of medical bills or a natural disaster rather than poor financial management. [11] [12]

Consider refinancing through a conventional local lender. The advantage of a local lender is that you can explain your situation face to face and try to negotiate a conventional refinance of your mortgage. A local bank or credit union can use other factors such as length of time as a customer, employment history, and the bank’s dedication to local housing to balance factors such as a low credit score and bankruptcy in the underwriting process. [13]

  • A local bank or credit union may also be more likely to consider a local co-signor on your loan.

Part Three of Three:
Getting a Mortgage After a Bankruptcy Edit

Begin a savings plan. Whether you are trying to refinance a current mortgage or applying for a new loan, you will likely be faced with a 3-percent down payment or closing costs. A lender will also want to see your financial resources with your application. A savings account will reflect favorably on your credit worthiness. [14]

Apply for a conventional mortgage through a government-backed program. The general waiting periods for loans through Fannie Mae [15] is two years (reduced from four years in 2015). [16]. Freddie Mac post-bankruptcy waiting periods are stricter and can range up to 60 months depending on the circumstances of your bankruptcy. [17]

  • Conventional mortgages through Fannie Mae and Freddie Mac have complicated requirements for income, employment, and credit history. A mortgage professional can assist you in determining your qualifications.

Explore the home-buying options through the Neighborhood Assistance Corporation of America (NACA). [18] If you live within an area served by one of the 40 national offices, [19] you can attend a free seminar to learn if the NACA program may be able to help you purchase a home. [20]

  • The NACA is a non-profit organization that acts as a bridge between potential homeowners and banks. If you can adhere to their guidelines, you may qualify for a no-down payment, market rate conventional mortgage. NACA programs are designed to keep buyers with credit issues from falling into predatory loans. [21]
  • A NACA counselor reviews your cash flow and savings patterns and helps you establish healthy habits. It typically takes up to two years to get through the NACA program.

How to Get Jobs After Being Self Employed

How to Compare No Down Payment Mortgages

How to Refinance Your Mortgage

How to Create a Mortgage Calculator With Microsoft Excel

How to Choose a Mortgage Broker

How to File Bankruptcy in the United States

How to Buy a Home After Filing Bankruptcy

How to File Chapter 7 Bankruptcy Without a Lawyer

How to Buy a Car While in Bankruptcy

How to Rebuild Credit After Bankruptcy


Applying for a Mortgage after a Bankruptcy #home #refinance #calculator


#bankruptcy mortgage lenders

#

Applying for a Mortgage after a Bankruptcy

Qualifying for a home mortgage with a bankruptcy on your credit history requires time and money. Yet by understanding the requirements to get a mortgage after a bankruptcy and by carefully rebuilding your credit standing, you can apply for a loan and buy a home.

The three main U.S. credit bureaus–Equifax, Experian and TransUnion–maintain your credit history. Using that history, plus its own proprietary equation, the Fair Isaac Corp. calculates your FICO credit score somewhere between 850 and 300 points. Anything above 700 points is good to excellent, with 720 or above earning you lower interest rates. Below 620 points is considered poor.

Impact of a Bankruptcy

A bankruptcy makes a major impact on your credit score and makes it much more difficult to qualify for a home mortgage. First, you can expect a drop of 100 or more points. That immediately takes you from excellent to poor. Then a record of the bankruptcy stays on your credit history for 10 years. A foreclosure stays on for seven years. Other negative information such as a late payment stays on for three years.

While obtaining a home mortgage with a bankruptcy on your record is difficult, you don t have to wait 10 years to begin making a difference.

After you have filed for bankruptcy protection or liquidation, you will wait four years before a traditional mortgage lender will qualify you for a home loan with market interest rates. And that will happen then only if you have taken steps to improve your credit and are in a good enough financial position to handle the loan.

Two years after a bankruptcy filing, you can apply for a Federal Housing Administration-backed loan. FHA loans have slightly higher interest rates than market-rate loans. However, you might have to come up with less money down.

Hard money lenders will consider offering a home mortgage six months after your bankruptcy, but interest rates are very high and the down payment can be in the 30 percent range.

No matter what avenue you pursue to get a home mortgage with a bankruptcy filing in your past, you should begin immediately after the filing to repair your credit score. Remember that most negative information falls off your report after three years, so your score could be improving right away.

Do not make multiple credit applications, even if you can qualify for loans or credit cards. Multiple applications push your score down.

Do try to get a secured credit card, but make certain the card issuer reports to the credit bureaus. And be absolutely certain to pay your bill on time.

An installment loan from a retailer can help you establish a good track record. Showing that you have been able to save on your current income will not only help you accrue a down payment, but you will also demonstrate to the lender your ability to manage your finances.

Consider alternatives to traditional home mortgages with a bankruptcy on your record. Seller financing can be an option at any time. This is often a far more flexible arrangement. Plus, if you include this provision in your seller-financed loan agreement, you can convert to a traditional loan as you are able to qualify for it.

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When can I get a mortgage after bankruptcy? #mortgage #amortization #calculators


#mortgage after bankruptcy

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When can I get a mortgage after bankruptcy?

If you have just filed bankruptcy, you will not be barred from ever obtaining a mortgage loan; however, you will not be able to get one immediately. When you can get a mortgage after bankruptcy will depend upon the type of loan you want, the type of bankruptcy you filed, and how good your credit is at the time you want the loan.

Here are the details:

FHA Loans and VA Loans

To obtain an FHA loan or a VA loan after a Chapter 7 bankruptcy, you must wait two years from the date your Chapter 7 is discharged. You can obtain an FHA loan during a Chapter 13 bankruptcy as long as you have made 12 months of satisfactory Chapter 13 plan payments, but you must have bankruptcy court approval to get the loan. In the case of either an FHA loan or a VA loan, you must provide an explanation of the bankruptcy.

USDA Loans

If you want a USDA loan, you must wait three years from the date of a Chapter 7 discharge or after 12 months of making Chapter 13 plan payments, with court approval, or at least one year after the Chapter 13 is discharged.

Conventional Loans

Conventional loans have the longest waiting periods. If you want a conventional loan, you must wait four years after receiving a Chapter 7 discharge and two years after receiving a Chapter 13 discharge. If your Chapter 13 case was dismissed without a discharge, you must wait four years from the date of the dismissal.

Meeting Other Loan Criteria

Once these time periods pass, you will then be able to qualify for a mortgage loan — but you must still meet all the typical qualifications for obtaining a mortgage loan. You must be creditworthy, and you must be able to prove that you have a sufficient and reliable source of income. To learn more about rebuilding your credit after bankruptcy, see our Your Credit Bankruptcy area.


Getting a Mortage after Filing Bankruptcy #refinance #my #mortgage


#mortgage after bankruptcy

#

Most people probably assume that obtaining a mortgage to purchase a home, refinance or to consolidate debt after a bankruptcy is out of the question. In fact, many people are able to obtain these mortgage services.

Mortgage After Bankruptcy

Most people probably assume that obtaining a mortgage to purchase a home, refinance or to consolidate debt after a bankruptcy is out of the question. In fact, many people are able to obtain these mortgage services, even 1 day after a bankruptcy discharge in some cases. Loan programs and lenders are available that require little or no time after the discharge of a bankruptcy. Here are a few tips to speed up the road to credit recovery and the mortgage services you desire. First, continue timely paying on items such as your home and cars that were not discharged in the bankruptcy. Having at least a couple credit items you are paying on- time will help. Second, limit the amount of other debts such as credit cards or bank loans. Too much debt will make it more difficult to qualify for a loan, particularly revolving credit accounts such as credit cards.

Here are a few tips to speed up the road to credit recovery and the mortgage services you desire. First, continue timely paying on items such as your home and cars that were not discharged in the bankruptcy. Having at least a couple credit items you are paying on- time will help. Second, limit the amount of other debts such as credit cards or bank loans. Too much debt will make it more difficult to qualify for a loan, particularly revolving credit accounts such as credit cards.

Your debt-to-income ratio is one part of the puzzle lenders will look at in determining your ability to repay a mortgage. Another important aspect is providing all necessary documents in a timely manner to your loan consultant. Items such as paystubs and tax returns are generally needed in order to establish your income and show the ability exists to repay the loan.

Information on your credit report needs to be checked for accuracy. Items that you feel are inaccurate need to be disputed in writing with the three major credit repositories. (Equifax, Experian and Trans Union). This may take persistence to ensure the items are removed appropriately. The removal of this inaccurate information will help establish a more favorable debt-to-income ratio and make the process of qualifying for a loan easier. Finally, if you are unable to qualify for a loan initially, do not despair. Sometimes this process requires a little patience. Follow the tips mentioned earlier and more options are usually available 6 months to a year after the bankruptcy discharge.

More Help on Getting a Mortage after Filing Bankruptcy

  • Credit Report – Credit reports are documents provided by major credit reporting companies (most notably Experian, Trans Union and Equifax) which contain personal information about individuals such as: how much money the individual has borrowed, how much debt is owed by the individual and the individual\’s bill payment history. – read more

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Chapter 7 Articles

Chapter 13 Articles

Chapter 7 and Chapter 13 Bankruptcy Help

The two most common consumer bankruptcies are Chapter 7 and Chapter 13, our sponsoring lawyers handle these types exclusively so you can be sure you are getting accurate legal advice when you file bankruptcy. Our Bankruptcy attorneys will fight to protect your rights and your property, fight the aggressive and annoying creditors for you, and they can help you keep your home, vehicles and other property.

A lawyer will be committed to getting you debt relief and providing you with valuable information, services and advice to get you a better financial future. There are many convenient locations to make filing bankruptcy or learning about the alternatives we offer, even easier.

Recent Bankruptcy Articles

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Home Equity and Bankruptcy
If you have equity on your house, then it is possible to use that equity in order to pay off your Chapter 13 bankruptcy at a much faster pace.
– read more

  • Fair Credit Reporting Act
    The primary purpose of the Fair Credit Reporting Act is to ensure fairness and accuracy of credit reporting, and that the procedures followed are reasonable.
    – read more
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    A list of ten most common reasons people usually file for bankruptcy, including harassment from creditors and to end wage garnishments.
    – read more
  • Student Loans and Bankruptcy
    According to new changes, your student loan will only be discharged if the bankruptcy court is convinced that paying back the loan would bring about undue hardships for you or the people who are dependent on you.
    – read more

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    ATTORNEY ADVERTISEMENT NOTICE: BankruptcyHome is a group advertisement and is not a lawyer referral service. Attorneys who appear on BankruptcyHome pay advertising fees to be included on the site. Using BankruptcyHome does not create an attorney-client relationship between yourself and an Attorney. BankruptcyHome is not a law firm and the information contained on this site is not legal advice. The attorneys listed do not in any way constitute a referral or endorsement by this website. To see the attorney in your area who is responsible for this advertisement please click here. If you live in Alabama, Florida, Missouri, New York or Wyoming, please click here for additional information

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    Credit after bankruptcy – Help & Guidance – Experian UK #streamline #mortgage


    #mortgage after bankruptcy

    #

    How Bankruptcy Affects Your Credit

    Bankruptcy is usually seen as a last resort for dealing with debts you cannot pay. When you’re made bankrupt, your assets are usually shared out among those you owe money to and, as a result, you may lose your house and car – everything except essentials. All your bank accounts can be closed and the bankruptcy is advertised on the internet.

    In return, you’re usually freed from your debts after one year (although some types of debt cannot be included in a bankruptcy, such as government student loans and court fines).

    Who should consider bankruptcy?

    If you are struggling to meet payments, get in touch with your creditors and tell them about your situation. Many lenders will be sympathetic and you may be able to make an informal agreement directly with them to make reduced payments for a while.

    Bankruptcy may still be the best option for some people. However, the long-term effects on your ability to borrow mean it should only ever be considered as a last resort and after receiving professional advice, such as from a Citizens Advice Bureau. a solicitor, a qualified accountant, an authorised insolvency practitioner, a reputable financial adviser or a reputable debt advice centre. Alternatively, contact National Debtline. StepChange Debt Charity or Payplan for free, confidential and impartial advice.

    You do not need to pay a company to arrange a debt management plan for you, nor should you have to pay for help from any so-called credit repair companies.

    How will bankruptcy affect your ability to obtain credit?

    You go bankrupt via a court order, either by applying yourself or when your creditors (the people you owe money to) approach the court to ask for you to be made bankrupt.

    The bankruptcy order shows on your credit report for a minimum of six years from the date of bankruptcy order. During the period of bankruptcy a number of restrictions apply. For example, you are legally bound to tell a lender you are bankrupt if you are applying for credit of more than £500. This means you may struggle to obtain credit while you are bankrupt.

    Even after your bankruptcy has been discharged, organisations might refuse to give you credit or other financial services simply because you have been bankrupt in the past. If you do manage to find someone who will lend to you, it is possible they may charge you a higher interest rate as they will see you as a high-risk customer. Some mortgage lenders will ask if you have ever been bankrupt, so your bankruptcy could affect your creditworthiness long after the information has been removed from your credit report.

    When will your bankruptcy end?

    You will be automatically freed from your bankruptcy (known as being ‘discharged’) after a maximum of 12 months in England and Wales. However, the discharge can be extended (potentially up to 15 years) if you fail to cooperate in the bankruptcy proceedings or are deemed to have acted in a dishonest or blameworthy way.

    Scottish bankruptcies are called sequestrations and are usually discharged after one year.

    Who can find out about your bankruptcy?

    The bankruptcy is a matter of public record. It is also shown in your credit report – and as a condition of a new job or tenancy, you may have to agree to let an employer or landlord look at the ‘public’ information on your credit report, such as court judgments and bankruptcy orders. So bankruptcy may affect your chances of renting a home or getting the job you want.

    One of the best ways to stay in control of your finances is to check your Experian Credit Report with Experian CreditExpert .

    Get your free Experian Credit Report Score

    Experian CreditExpert provides more than just your credit report, including:

    • Access to your Experian Credit Score
    • Personalised tips on how to improve your score
    • Dedicated, specialist help if you’re a victim of fraud
    • Be alerted to certain credit report changes which could indicate potential fraudulent activity
    • Help and guidance from our UK based call centre team

    A monthly fee of £14.99 applies after your free trial.

    You may cancel during your 30 day free trial without charge.


    When Can I Get a Mortgage After Short Sale? #best #home #mortgage #lenders


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    #

    When Can I Get a Mortgage After Short Sale?

    If you have lost your home through a short sale and want to get another mortgage loan, you may be wondering how long you’ll have to wait. Your credit will take a hit after a short sale, although possibly not as much as it would if you had lost your home through foreclosure. Nevertheless, a short sale will likely prevent you from getting another mortgage right away. The amount of time you must wait before applying for a new mortgage loan depends on the type of lender and your financial circumstances. Read on to learn more.

    (For more articles on rebuilding credit after foreclosure, visit our Improving Credit After Foreclosure and Bankruptcy topic area.)

    Getting an FHA Loan After a Short Sale

    The amount of time you must wait to obtain a new FHA mortgage varies, depending on your credit history and the reasons for the short sale.

    No Waiting Period

    You may not have to wait to apply for a FHA-insured mortgage loan following the short sale if:

    you were not in default on the prior mortgage at the time of the short sale, and

    you made all of your old mortgage and other installment debt payments on time for at least 12 months leading up to the short sale.

    Three Year Waiting Period

    If you were in default on the old mortgage loan at the time of the short sale, then you must wait at least three years before applying for another FHA loan. The three-year waiting period starts to run from:

    the date of the short sale, or

    if the prior mortgage was also an FHA-insured loan, from the date that FHA paid the claim on the short sale.

    Exceptions to the Three Year Waiting Period

    You may be able to qualify sooner than three years if you can show that extenuating circumstances caused the mortgage default. Extenuating circumstances might include:

    serious illness or death in the family, usually involving a primary wage earner

    divorce (in limited situations), or

    You must also show that you had good credit prior to the event that caused you to default on the old mortgage. That means you should make all of your debt payments on time following the short sale.

    When You Will Not Be Eligible for a New FHA Loan

    Notwithstanding whether or not you defaulted on the old mortgage loan, you are not eligible for a new FHA loan if you were using the short sale simply to take advantage of cheaper housing prices. That means you cannot use the short sale as a way to get rid your old house in a declining housing market and buy a comparable house for a lower price.

    Getting an Fannie Mae/Freddie Mac Loan After Short Sale

    Waiting periods for a Fannie Mae or Freddie Mac mortgage loan following a short sale vary, depending on the circumstances. It depends in large part on how much money you are able to put down as a down payment. Your waiting period will be:

    two years, if the maximum loan-to-value (LTV) ratio of the loan is 80%

    four years, if the maximum LTV is 90%

    In other words, you’ll have to make a 20% down payment to wait two years, 10% down payment to wait four years, or the minimum down payment if you wait seven years.

    Exceptions to the Normal Waiting Periods

    You may be able to shorten the waiting period to two years for a Fannie or Freddie loan if you can also meet the following requirements:

    prove in writing that the short sale was the result of extenuating circumstances, and

    the maximum loan-to-value (LTV) ratio of the new mortgage is 90%.

    Also, the seven-year waiting period only applies to conventional loans that are sold to Fannie Mae or Freddie Mac. This rule does not apply to Fannie or Freddie loans that are FHA-insured.

    Conventional, Private Lenders

    For most other types of lenders, the waiting periods can vary. Most lenders tend to follow Fannie Mae’s guidelines for post-short sale mortgages. Other lenders may shorten the post-short sale waiting period, provided that you make a larger down payment (sometimes 25% or more) and agree to a higher interest rate. You will also need to have good credit.

    Your FICO Score

    Notwithstanding the waiting periods, for each type of lender, you must still establish good credit following the short sale. That means your FICO score must meet the lender’s minimal requirements to qualify for a post-short sale mortgage loan. Alternatively, while you may be able to obtain a new mortgage with a low FICO score, you may have to make a larger down payment or pay a higher interest rate.

    Short sales can damage FICO scores. And the higher your credit score, the bigger the FICO drop with a short sale. You may fare slightly better if the short sale resulted in no deficiency (meaning you sold the house for more than what you owed on the mortgage loan) than if the short sale did result in a deficiency. To learn more see, FICO Provides Insight Into the Impact of Foreclosure, Bankruptcy, and Short-Sale on Your FICO Score .

    To re-establish good credit and boost your FICO score, you should:

    always pay your bills on time

    keep your credit account balances low

    monitor your credit report for errors and inaccuracies, and

    maintain a small number of credit accounts.

    Monitor and Correct Your Credit Report

    It is essential that you review your credit report immediately if you anticipate applying for a new mortgage following a short sale. That is because short sales are frequently reported as “foreclosures” on credit reports. If your short sale is reported as a foreclosure on your credit report, you may be erroneously denied a new mortgage loan because:

    your FICO score is lower than it should be (foreclosures are more damaging to FICO scores than short sales)

    the lender mistakenly applied a longer post-foreclosure waiting period against you when you would have otherwise qualified, or

    the lender required you to make a higher down payment than what you would have been required to make if the short sale were properly reported.

    (To learn about the impact of foreclosure on your ability to get a new mortgage, see When Can I Get a Mortgage After Foreclosure? )

    You should contact all three major credit reporting agencies to correct the error and be prepared to supply documentation of the short sale to your lender.

    For more information on how to correct your credit report, visit Nolo’s Credit Repair section .


    Getting a Mortage after Filing Bankruptcy #mortgage #marketing


    #mortgage after bankruptcy

    #

    Most people probably assume that obtaining a mortgage to purchase a home, refinance or to consolidate debt after a bankruptcy is out of the question. In fact, many people are able to obtain these mortgage services.

    Mortgage After Bankruptcy

    Most people probably assume that obtaining a mortgage to purchase a home, refinance or to consolidate debt after a bankruptcy is out of the question. In fact, many people are able to obtain these mortgage services, even 1 day after a bankruptcy discharge in some cases. Loan programs and lenders are available that require little or no time after the discharge of a bankruptcy. Here are a few tips to speed up the road to credit recovery and the mortgage services you desire. First, continue timely paying on items such as your home and cars that were not discharged in the bankruptcy. Having at least a couple credit items you are paying on- time will help. Second, limit the amount of other debts such as credit cards or bank loans. Too much debt will make it more difficult to qualify for a loan, particularly revolving credit accounts such as credit cards.

    Here are a few tips to speed up the road to credit recovery and the mortgage services you desire. First, continue timely paying on items such as your home and cars that were not discharged in the bankruptcy. Having at least a couple credit items you are paying on- time will help. Second, limit the amount of other debts such as credit cards or bank loans. Too much debt will make it more difficult to qualify for a loan, particularly revolving credit accounts such as credit cards.

    Your debt-to-income ratio is one part of the puzzle lenders will look at in determining your ability to repay a mortgage. Another important aspect is providing all necessary documents in a timely manner to your loan consultant. Items such as paystubs and tax returns are generally needed in order to establish your income and show the ability exists to repay the loan.

    Information on your credit report needs to be checked for accuracy. Items that you feel are inaccurate need to be disputed in writing with the three major credit repositories. (Equifax, Experian and Trans Union). This may take persistence to ensure the items are removed appropriately. The removal of this inaccurate information will help establish a more favorable debt-to-income ratio and make the process of qualifying for a loan easier. Finally, if you are unable to qualify for a loan initially, do not despair. Sometimes this process requires a little patience. Follow the tips mentioned earlier and more options are usually available 6 months to a year after the bankruptcy discharge.

    More Help on Getting a Mortage after Filing Bankruptcy

    • Credit Report – Credit reports are documents provided by major credit reporting companies (most notably Experian, Trans Union and Equifax) which contain personal information about individuals such as: how much money the individual has borrowed, how much debt is owed by the individual and the individual\’s bill payment history. – read more

    Find Other Articles

    Educate Yourself On More Topics

    Chapter 7 Articles

    Chapter 13 Articles

    Chapter 7 and Chapter 13 Bankruptcy Help

    The two most common consumer bankruptcies are Chapter 7 and Chapter 13, our sponsoring lawyers handle these types exclusively so you can be sure you are getting accurate legal advice when you file bankruptcy. Our Bankruptcy attorneys will fight to protect your rights and your property, fight the aggressive and annoying creditors for you, and they can help you keep your home, vehicles and other property.

    A lawyer will be committed to getting you debt relief and providing you with valuable information, services and advice to get you a better financial future. There are many convenient locations to make filing bankruptcy or learning about the alternatives we offer, even easier.

    Recent Bankruptcy Articles

    Recent Bankruptcy Articles

    Home Equity and Bankruptcy
    If you have equity on your house, then it is possible to use that equity in order to pay off your Chapter 13 bankruptcy at a much faster pace.
    – read more

  • Fair Credit Reporting Act
    The primary purpose of the Fair Credit Reporting Act is to ensure fairness and accuracy of credit reporting, and that the procedures followed are reasonable.
    – read more
  • Most Common Reasons for Bankruptcy
    A list of ten most common reasons people usually file for bankruptcy, including harassment from creditors and to end wage garnishments.
    – read more
  • Student Loans and Bankruptcy
    According to new changes, your student loan will only be discharged if the bankruptcy court is convinced that paying back the loan would bring about undue hardships for you or the people who are dependent on you.
    – read more

  • Copyright © 2015 LeadRival. All rights reserved

    ATTORNEY ADVERTISEMENT NOTICE: BankruptcyHome is a group advertisement and is not a lawyer referral service. Attorneys who appear on BankruptcyHome pay advertising fees to be included on the site. Using BankruptcyHome does not create an attorney-client relationship between yourself and an Attorney. BankruptcyHome is not a law firm and the information contained on this site is not legal advice. The attorneys listed do not in any way constitute a referral or endorsement by this website. To see the attorney in your area who is responsible for this advertisement please click here. If you live in Alabama, Florida, Missouri, New York or Wyoming, please click here for additional information

    Free, Online, Fast, No Obligation, and Confidential


    When can I get a mortgage after bankruptcy? #mortgage #comparison


    #mortgage after bankruptcy

    #

    When can I get a mortgage after bankruptcy?

    If you have just filed bankruptcy, you will not be barred from ever obtaining a mortgage loan; however, you will not be able to get one immediately. When you can get a mortgage after bankruptcy will depend upon the type of loan you want, the type of bankruptcy you filed, and how good your credit is at the time you want the loan.

    Here are the details:

    FHA Loans and VA Loans

    To obtain an FHA loan or a VA loan after a Chapter 7 bankruptcy, you must wait two years from the date your Chapter 7 is discharged. You can obtain an FHA loan during a Chapter 13 bankruptcy as long as you have made 12 months of satisfactory Chapter 13 plan payments, but you must have bankruptcy court approval to get the loan. In the case of either an FHA loan or a VA loan, you must provide an explanation of the bankruptcy.

    USDA Loans

    If you want a USDA loan, you must wait three years from the date of a Chapter 7 discharge or after 12 months of making Chapter 13 plan payments, with court approval, or at least one year after the Chapter 13 is discharged.

    Conventional Loans

    Conventional loans have the longest waiting periods. If you want a conventional loan, you must wait four years after receiving a Chapter 7 discharge and two years after receiving a Chapter 13 discharge. If your Chapter 13 case was dismissed without a discharge, you must wait four years from the date of the dismissal.

    Meeting Other Loan Criteria

    Once these time periods pass, you will then be able to qualify for a mortgage loan — but you must still meet all the typical qualifications for obtaining a mortgage loan. You must be creditworthy, and you must be able to prove that you have a sufficient and reliable source of income. To learn more about rebuilding your credit after bankruptcy, see our Your Credit Bankruptcy area.


    How Can You Refinance Your Mortgage After a Bankruptcy Discharge? #midland #mortgage


    #mortgage after bankruptcy

    #

    How Can You Refinance Your Mortgage After a Bankruptcy Discharge?

    Treat bankruptcy as a beginning, not the end. Refinancing is possible.

    Bankruptcy can be stressful, unsettling and demoralizing. The challenges of obtaining a mortgage after a bankruptcy discharge are formidable, and the difficulties have increased since the last deep global recession. Yet, obtaining a mortgage is still possible if you plan and orchestrate an appropriate financial recovery structure. Use the new beginning offered by bankruptcy protection to your advantage to get the mortgage you need.

    1

    Understand the difference between filing for a Chapter 7 and a Chapter 13 bankruptcy. While a Chapter 7 (liquidation) bankruptcy is often discharged in a matter of months, a Chapter 13 (“wage earner” plan) petition often takes three to five years to reach discharge. However, after six to 12 months of “on time, as agreed payments,” homeowners in a Chapter 13 case may be eligible to refinance a mortgage well before their discharge date.

    2

    Prepare your financial life for a refinance. Keeping a primary residence during and after bankruptcy usually requires a homeowner to continue making all monthly payments on time. Shortly after receiving a discharge, begin re-establishing credit. If you continued making full payments on an auto loan, your credit score should not be as severely affected by the bankruptcy. Otherwise, try to get an auto loan as soon as possible. Should you purchase a vehicle at a “buy here, pay here” dealership, be sure they report to the credit bureaus to help your credit score. Get at least one new credit card. Even a fully secured card, requiring a deposit equal to the credit limit, helps prepare a credit report for a mortgage refinance.

    3

    Get an expert opinion of your home’s fair market value. Compare the FMV to the outstanding mortgage balance to learn the equity (ownership) percentage, typically called loan-to-value. For example, if the home appears to be valued at around $200,000 and the mortgage balance is $150,000, the LTV would be 75 percent. Homeowners with a recent bankruptcy discharge and an LTV exceeding 75 percent will have difficulty finding a reasonably priced mortgage refinance loan.

    4

    Try to build up some cash reserves. Bankruptcies typically deplete cash reserves. However, recently bankrupt homeowners improve their chances of refinancing if they can show some cash increases. Whether through a strong yard sale, a second job, successfully selling items in an online auction or another cash-generation plan, applicants with some cash reserves appear more stable and responsible, even with a recent bankruptcy discharge.

    5

    Be prepared for a challenge if you applied for a refinance less than two years from the bankruptcy discharge date. Since the real estate/mortgage “bubble” burst in 2007, the menu of available refinancing options for homeowners with less than good credit or a recent bankruptcy has shrunk severely. While a refinance is not impossible, homeowners should be ready to call, visit (in person or online), investigate and evaluate many mortgage lenders. The former large number of “sub-prime” lenders willing to make loans to recent bankrupts has fallen sharply. However, diligent homeowners can still find a reasonably priced mortgage refinance loan shortly after receiving a discharge.

    Things You Will Need

    • Ownership of primary residence
    • Mortgage
    • Personal financial plan to re-establish credit

    Tips

    • Waiting two years from a bankruptcy discharge qualifies homeowners, with good credit since the discharge, for a conforming (Fannie Mae or Freddie Mac) mortgage loan.
    • Create a plan to fix finances and rebuild credit before filing a bankruptcy petition.
    • Without fail, make all mortgage payments on time before, during and after bankruptcy discharge.

    Warnings

    • Do not assume any home fair market value, particularly if the property has a substantial mortgage balance. An unpleasant loan-to-value surprise may be on the horizon.
    • Resist the natural temptation to be impatient when searching for a lender interested in lending to a recent bankrupt. Patience is critical to locate the best mortgage loan available.

    About the Author

    For 34 years Bill Pirraglia served as a senior executive in the banking industry. Since 2005, he has authored articles, blog entries, tips and advice columns, SEO web copy and two published books. He specializes in personal and business finance topics, along with legal articles for clients large and small.

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    What Is a Charge Off of a Second Mortgage After Foreclosure? #mortgage #service #center


    #2nd mortgage

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    What Is a Charge Off of a Second Mortgage After Foreclosure?

    Question

    My home was foreclosed on about a year ago. I stopped making payments on the second mortgage around the same time and I just got a notice that the loan was “charged off.” What does this mean? Is the debt forgiven? What should I do, if anything?

    Answer

    Your second-mortgage debt has not been canceled or forgiven. A “charge off” is an accounting term that means the creditor no longer considers the money you owe as a source of profit, but rather, counts it as a loss. A charged-off loan (unlike forgiven debt) is still considered an obligation that you must pay.

    Understanding Charged-Off Second Mortgages

    When the first-mortgage lender foreclosed on your home, the second mortgage was also foreclosed and that lender lost its security interest in the real estate. (Learn more in Nolo’s article What Happens to Liens and Second Mortgages in Foreclosure? ) While the second-mortgage lien was eliminated, the debt associated with the second mortgage was not. Instead, it became unsecured debt.

    Then, after you stopped making payments on your second mortgage, your second mortgage lender eventually determined that the debt was uncollectible and decided to charge it off. (This usually occurs between 180 and 240 days from the date of your last payment.) This means that the lender is writing the debt off their books, but it does not mean that it forfeits the right to collect the debt. Even though the lender did a charge off, the debt remains legally valid.

    What Happens After a Charge Off?

    After the charge off, the creditor will typically place the account into collection. The creditor will either act as its own collector or it will assign (or sell) the debt to a third-party collection agency. No matter which of these entities is acting as the debt collector, it will probably make repeated calls and send letters to you to in an attempt to collect the debt.

    Your Options After a Charge Off

    There are a few different routes you can take after the lender charges off a second-mortgage and sends it to collection. Your options include:

    Make the Required Monthly Payments or Pay the Debt in Full

    You will have to make payments on the debt or pay it off in full; otherwise, the collection agency can sue you personally to recover the money (so long as the statute of limitations has not run out). (Learn more in Nolo’s Statute of Limitations Debt Collection area).

    Don’t Pay and Let the Collection Agency Sue You

    This is generally not recommended. If the collection agency wins the lawsuit and gets a money judgment against you, it may collect this amount by doing such things as garnishing your wages or levying your bank account. (Learn about methods that creditors can use to collect judgments .) Also, your credit will be further damaged. Of course, if you have nothing that the collection agency can get from you, and this financial situation will last for a long time, then it might make sense to do nothing. (See What Does Judgment Proof Mean? )

    File for Bankruptcy

    Filing for bankruptcy is an option as well since a bankruptcy can reduce or eliminate this type of debt. (For more articles on bankruptcy, including bankruptcy basics, bankruptcy procedures, and specific information about filing bankruptcy in your state, visit our Bankruptcy topic area.)

    Settle the Debt

    If you can’t afford the required monthly payments or come up with enough to pay off the total amount of the debt, you can negotiate a settlement for an amount less (often much less) than what you actually owe. Some creditors will accept as little as 10%-20% of the remaining balance to settle the debt. (To learn more about settling a debt, visit Nolo’s Debt Settlement Negotiating With Creditors area.)