Friday, April 17, 2009
MORTGAGE AFTER BANKRUPTCY
There had been certain changes in the bankruptcy laws since 2005. Previously if a person wants to have a mortgage after bankruptcy discharge then he or she used to get it approved in a very short period. Now the things have changed. There are few things now one must know in order to apply for a mortgage after he or she is discharged by the bankruptcy court. Now if any person requires having a FHA mortgage then his or her application will be approved if the application is made after two years of discharge and in case of a usual mortgage the application must be after five years from the discharge date.
To wait for such a long time before applying for a mortgage after bankruptcy is just a small part of the whole scenario. The finances and the credit must be in good position to apply for a mortgage. This is a very important part because if nothing is done after filling bankruptcy then the credit report of that person will be full of errors and that might prevent a person from getting a mortgage even after waiting for such a long time.
The primary thing that must be done is to review the credit report after getting discharge order from the court. Because generally the creditors do not go to the credit bureaus to update the status once a person file bankruptcy. In those cases, it is always better to hire an attorney to fix those errors. By doing this, it is found that most of the items will be deleted. The credit score will also start to increase.
The second most important thing would be to build a new positive credit. Applying for bankruptcy friendly credit cards will be a good move. This will also help an individual to build a positive credit.
By doing so a person can take his or her credit score to a great extent in those two or five years. It is found that the credit score of a person moving up to 750 within 18 months after filing bankruptcy. The credit score of this level is always good enough to get approval for a good mortgage rate.
So getting a mortgage with a good rate after two years of filing bankruptcy is not easy but can be achieved if certain things are kept in mind.
To wait for such a long time before applying for a mortgage after bankruptcy is just a small part of the whole scenario. The finances and the credit must be in good position to apply for a mortgage. This is a very important part because if nothing is done after filling bankruptcy then the credit report of that person will be full of errors and that might prevent a person from getting a mortgage even after waiting for such a long time.
The primary thing that must be done is to review the credit report after getting discharge order from the court. Because generally the creditors do not go to the credit bureaus to update the status once a person file bankruptcy. In those cases, it is always better to hire an attorney to fix those errors. By doing this, it is found that most of the items will be deleted. The credit score will also start to increase.
The second most important thing would be to build a new positive credit. Applying for bankruptcy friendly credit cards will be a good move. This will also help an individual to build a positive credit.
By doing so a person can take his or her credit score to a great extent in those two or five years. It is found that the credit score of a person moving up to 750 within 18 months after filing bankruptcy. The credit score of this level is always good enough to get approval for a good mortgage rate.
So getting a mortgage with a good rate after two years of filing bankruptcy is not easy but can be achieved if certain things are kept in mind.
Posted by Saul at 3:08 AM
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