Financing a Home After Bankruptcy
I'm often asked, "can I still buy a home if I've had a recent bankruptcy?".
Absolutely! Now, for obvious reasons, you can expect to pay a higher rate on your mortgage than those who haven't had a bankruptcy.
You actually have a couple of choices when it comes to purchasing a home after a bankruptcy.
You can get your mortgage through a non-prime lender, or seek out an FHA Loan.
Whichever mortgage lender type you go with, be prepared to produce an explanation of the circumstances of the BK, as well as the documentation and schedule of debtors.
You'll also need to have re-established some credit in most cases, to show the mortgage lender that you can now handle paying your bills again.
You needn't be a novelist to write you BK explanation letter, your mortgage broker can help with that.
At our company, it's no big deal to help 20-30 people each month at writing their explanation letter for Bk's.
We know what the mortgage lender is looking for and what format they like, so relax when it comes to this part of the loan.
They really just want to know what the circumstances surrounding your BK were, in layman's terms.
There are basically two kinds of personal bankruptcies that mortgage lenders deal with; Chapter 13, where your debts are reorganized and paid out over time and Chapter 7, where your assets are liquidated.
I'm not an attorney, so speak to your tax advisor about each of these bankruptcies if you'd like in-depth information about what they mean.
You can usually get a home mortgage in 12 months with a chapter 13 bankruptcy.
You can expect to wait at least 2 years for a chapter 7 bankruptcy.
Either way, you can expect to produce a trustee letter.
It's dis-heartening, but I meet couples and individuals all the time who have either just filed bankruptcy, or they have one being discharged and I'm unable to help until they get a trustee letter, authorizing a home purchase.
I hope this helps you in your mortgage endeavor! View this and other articles at The Mortgage Blog [http://www.
ezmortgagequotes.
com/mortgage-blog.
html]
Absolutely! Now, for obvious reasons, you can expect to pay a higher rate on your mortgage than those who haven't had a bankruptcy.
You actually have a couple of choices when it comes to purchasing a home after a bankruptcy.
You can get your mortgage through a non-prime lender, or seek out an FHA Loan.
Whichever mortgage lender type you go with, be prepared to produce an explanation of the circumstances of the BK, as well as the documentation and schedule of debtors.
You'll also need to have re-established some credit in most cases, to show the mortgage lender that you can now handle paying your bills again.
You needn't be a novelist to write you BK explanation letter, your mortgage broker can help with that.
At our company, it's no big deal to help 20-30 people each month at writing their explanation letter for Bk's.
We know what the mortgage lender is looking for and what format they like, so relax when it comes to this part of the loan.
They really just want to know what the circumstances surrounding your BK were, in layman's terms.
There are basically two kinds of personal bankruptcies that mortgage lenders deal with; Chapter 13, where your debts are reorganized and paid out over time and Chapter 7, where your assets are liquidated.
I'm not an attorney, so speak to your tax advisor about each of these bankruptcies if you'd like in-depth information about what they mean.
You can usually get a home mortgage in 12 months with a chapter 13 bankruptcy.
You can expect to wait at least 2 years for a chapter 7 bankruptcy.
Either way, you can expect to produce a trustee letter.
It's dis-heartening, but I meet couples and individuals all the time who have either just filed bankruptcy, or they have one being discharged and I'm unable to help until they get a trustee letter, authorizing a home purchase.
I hope this helps you in your mortgage endeavor! View this and other articles at The Mortgage Blog [http://www.
ezmortgagequotes.
com/mortgage-blog.
html]
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