Mortgage After Bankruptcy

With economy being as it is, many couples and individuals are having a hard time making their payments. Unfortunately, more and more couples are being forced to file bankruptcy. Often, after filing bankruptcy, they are able to clear up their debts and get back on their feet financially. Many are worried that they will not be able to get a mortgage after bankruptcy. At one time this was almost the case. After bankruptcy, a mortgage or refinance of your home was almost impossible. Fortunately, a lot has changed in recent years. Now, a mortgage refinance after bankruptcy is very possible. Banks do not feel that customers should be punished forever for a bankruptcy that may have happened years ago.

When you file for bankruptcy, it goes on your credit report and stays there for several years usually seven to ten years. While the aftermath of bankruptcy lasts that long, it is still possible to get after bankruptcy mortgage financing. When you go to a bank to get mortgage financing after bankruptcy, the lender will want to know what caused the bankruptcy and how your credit has been since the bankruptcy. They are usually more concerned with how you have handled your debts since the bankruptcy. If the bankruptcy was caused by a once in a lifetime thing such as illness, unemployment or medical bills, they will be willing to give you a mortgage after bankruptcy. After bankruptcy, mortgages are usually charged a higher interest than a typical mortgage. Home mortgages after bankruptcy may require you to put down a larger down payment than you normally would. If you get a mortgage after a bankruptcy discharge, the lender will be more willing to work with you because the bankruptcy was discharged. Often couples will try to do mortgage refinancing after a bankruptcy to consolidate any other debts they may have. It is very difficult to get a FHA mortgage after bankruptcy if you filed for the bankruptcy within the past two years or if you had your previous home foreclosed on within the past three years. Getting a FHA home mortgage after bankruptcy is not impossible; there are just some requirements that need to be met first. Lenders will help with mortgages after bankruptcy and foreclosure after a certain time is met and financial stability can be proven.

If you are concerned about getting a mortgage after a bankruptcy, the first thing you need to do is make sure your other debts are either paid or current. Your next step is to see your local lender to get information on what the procedure or requirements are for mortgages after bankruptcy.