Mortgage After Bankruptcy

Can one get a mortgage after a bankruptcy? That is a question that is asked by a lot of people. An important lesson to learn is that credit cards are easy to get and one can end up with six or more credit cards. One can get a car loan and a mortgage also. But their bills have a habit of turning up every month and need to be paid. If one does not manage these payments properly and in time one may have no option left but to file for bankruptcy. This will give one a temporary relieve as it will keep the mortgage company and the credit card companies at bay. But this will be a short term relief. A lot of people don’t realize that credit cards give one an artificial buying power and therefore people tend to misuse credit cards. Yes life does not stop after a bankruptcy and it is not that one will never be able to get a mortgage again. Some mortgage companies require that a minimum period of 2 years should elapse after a bankruptcy before they will extend a mortgage loan.

But in USA the first place to start is with cleaning up the credit score and rebuilding it. Though this can be a long process but if one who has been through bankruptcy one must have learnt a few bitter lessons and if one wants to make a fresh start then one must start slow. First of all clear up any accounts that were absolved in your bankruptcy with the credit bureaus. Get a secured credit card that is a credit card for which you have made a deposit and can only use it to that extent. Make all payments through checks don’t use cash or a credit card. Pay your rent through check. Pay all bills in time. If a bill becomes due and you cannot pay it call the company and get it rescheduled but don’t let it get over due. Keep a record of all major payments that a mortgage company loan officer can verify. Try and earn a steady income and keep all debts in check. Work out your priorities. Getting a house may be more important then getting a car so work on that and use public transport.

One who has been through bankruptcy should not expect to get the same facilities as people who have never been through a bankruptcy and have a super credit score. Some mortgage companies may entertain a mortgage application sooner then others after a bankruptcy but may not offer very encouraging terms. If one makes an honest effort which has a visible track that can convince a loan officer that giving a mortgage is not a ‘high risk’ then they may entertain one. But be ready to accept a ‘no’ also. Getting home mortgages after bankruptcy or a mortgage after bankruptcy and foreclosure can be a long waiting process but not an impossible process. To get a FHA mortgage after bankruptcy requires checking the latest FHA rules. FHA does not accept a mortgage application till three years have elapsed since the bankruptcy.

One who has filed and gone through a bankruptcy should go to a credit councilor and get advice on rebuilding their credit. In some states these services are free and one should not shy away from using them.

One can get mortgage financing after bankruptcy and also mortgage refinancing after bankruptcy but one needs to be patient and build up their credit worthiness first. If one is going through the process of bankruptcy then one may not be able to get straight away a mortgage after bankruptcy discharge. All mortgage companies want to be absolutely sure that one is building a good credit rating and only after this happens will they be ready to entertain an application from someone who has been through a bankruptcy. So patience and fortitude is required to get a mortgage after bankruptcy.