subject: Post Bankruptcy Mortgage Application [print this page] Many of you may think that there is no life after insolvency. You might be of the idea that bankruptcy filing may signify the end of the road for you. However, you may still be able to rebuild your life and perhaps emerge even better financially than you would before your insolvency filing. Buying a property may even be possible for people with a history of insolvency. With so many lending institutions that specialize in providing post bankruptcymortgage, individuals with a history of bankruptcy may not find it too difficult to apply for a mortgage. You may have to bear in mind that a mortgage application after your bankruptcy filing may depend entirely on your guaranteed income as lenders in general rarely approve loans for applicants with an unstable income.
There are of course some qualification processes for you to go through to determine whether or not you may be qualified for a home mortgage after insolvency filing. Normally, lenders would prefer that you take a two year or 24 months waiting period before you apply for a loan. You may need to monitor and record your finances in the two years after your insolvency filing as lenders may want to see how you, as a bankruptcy enrollee, are able to get your life back together and manage your finances with a strict budget and if you are disciplined enough to follow through with the budget. So it may be beneficial for you to show your lenders your tenacity in rebuilding your finances without creating new bad credits. If you are able to do that, it might not be too difficult for you to apply for a post bankruptcymortgage.
After 24 months of rebuilding your credit report, you may apply for a home mortgage. If you manage to bring your credit scores from your all time low to an impressive all time high, you might even be eligible to apply for a 100% financing or loans with considerably low interest rates. So who says the words mortgageandbankruptcy do not belong in the same sentence? You may want to bear in mind that mortgage brokers or lenders may look into your credit history since the date of your bankruptcy discharge so it may be wise for you to keep your credit report clean by continuing to pay off debts that were not discharged in your insolvency filing. It may also be important that you maintain timely payments of those debts.
It is also advisable that you check your credit report before you apply for a mortgage to ensure that your insolvency filing was recorded accurately with nothing left out or added in. This is because any inaccurate information in the report may work against you so once youve obtained your copy of credit report you might want to thoroughly go through the report for any discrepancies and immediately report any mistakes that you detect. This may help you establish a good financial background for yourself and allow your lenders to view your report fairly.
Once you are sure that your credit report is accurate, you might want to set a limit to the amount of money that you can actually afford to spend. It may not be a good idea for you to apply for a loan that you cannot afford as you run the risk of landing back in bankruptcy court. The approval of your loan might also depend on the amount of deposit or down payment for the home you are buying. So in the 24 month waiting period you might want to save up to be able to pay for the deposit of your home without neglecting to pay your existing mortgageinbankruptcy.
Buying a home may be possible even after filing for bankruptcy. However, there may be exceptions made if you filed for Chapter 13. Chances are your trustee may not allow you to purchase a new home until after you have completed the repayment schedule of your current home unless you plan to sell your existing home and use the equity as down payment and to pay off creditors.
