A Mortgage Loan after Bankruptcy: Deal or No Deal

By: Michael Moody
Submitted: 2007-01-17 16:17:29
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

Many people believe that having a bankruptcy on your credit report will completely destroy any chance of getting a mortgage loan. While it is true that it certainly does not help your credit, you should know that bankruptcy does not mean you will never again be able to obtain a mortgage loan. You see, even having a bankruptcy on your credit, you could even obtain a mortgage. You are probably thinking, no, I don't think so. Well, it is true, even after bankruptcy, obtaining a mortgage loan is entirely within the realm of possibility.

If you already have a mortgage, you will be happy to find out that you could even consider refinancing that mortgage, yes even with something such as bankruptcy. Recovery is possible; however, it is not the easiest or shortest road that you will have to endure in your lifetime. It is going to be a long road and you have to work diligently to build your credit back up, refrain from obtaining more credit and once again regain the trust of lenders and creditors.

How can you do that? Well, the first thing you must do is to create a viable budget that you and your family can live with. How do you create a budget? Well, get a piece of paper and on one side of this paper make a list of the income coming into your home each month. This means the income of each person that is bringing money into the home, as well as any other income that should be included. On the other side, make a list of your expenses. Be sure to include all expenses, such as mortgage or rent payments, car payments, insurance payments, utility payments, groceries, entertainment and other household expenses. It is extremely important that you establish a budget for your personal finances.

This is obviously the similar data that you were required to provide as part of filing for bankruptcy. After a review of this data you should be able to determine if you are living outside of your means? Is your expenditure side greater than your income side? If so, make some adjustments, eliminate things you simply don't need and cut back on things that you don't need as much of.

Now that you have created a workable budget, it is important that you make all payments on time, every single month. Do not allow yourself to make late payments at all. This is a great way to rebuild your credit. To really speed up the process of rebuilding your credit, you will want to have one or two credit items listed. These could be your mortgage, your car or even one emergency credit card. This will help creditors see that you are indeed working to rebuild your credit and maintaining the right path to financial freedom.

You should also never rush yourself. Do not try to apply for a mortgage loan until about one to two years after your bankruptcy has been discharged. This is important; because creditors will want proof that you are indeed going along the right path, instead of digging yourself right back into the hole of debt you were once in. A mortgage after bankruptcy is possible, if you work hard to repair your credit, make all your monthly payments on time and refrain from obtaining more debt than you make in income each month.

Michael Moody is a successful Webmaster and publisher of Bankruptcy-Question.info. He provides information about various aspects of bankruptcy such as obtaining a mortgage loan after bankruptcy and other personal finance related topics that can be read on the Internet in the comfort of your own home.

Article source: Expert Articles

Most Recent Articles in Bankruptcy category

  • Make Filing for Bankruptcy a Last Resort - By: Lee Bell
    There are 2 main types of bankruptcy. If you can't avoid bankruptcy, determine between Chapter 7 and Chapter 13.
  • Life after bankruptcy is not so difficult - By: Jason Holmes
    "Avoid bankruptcy" is the most common phrase; we come across in our everyday life. There are several disadvantages of bankruptcy. But if you are bankrupt, it is not very difficult to swim out of the situation.
  • Achieving Financial Security in an Unreliable Economy - By: Mohan Mittal
    Financial Security is a false concept that developed in American society based on the idea that security comes from the perceived reliability of a regular or planned paycheck. Many people, believing in the commitment of their corporations to their well-being, have found themselves downsized, layed-off, outsourced, transferred, or, in some cases, even fired. The immediate reality becomes harshly apparent and sadly disappointing.
  • Bankruptcy - Is it the Last Option Only? - By: Michael Killian
    Bankruptcy is available when all other debt payment measures have failed and the unpaid debt is simply beyond the means of the consumer to repay. It is essential, then, to understand debt options prior to bankruptcy and to determine which debt repayment method is the least detrimental. Additionally it is the law of the land that you know your debt repayment options prior to bankruptcy.
  • It’s Official; We Are Now A Bankrupt Society? - By: Stephen Morgan
    The Government’s Insolvency Service claimed that 27,644 people were either made bankrupt or entered into an Individual Voluntary Arrangement (IVA) as a way to control or manage their debts in an ordered fashion.It was too early obviously to know how big a percentage of those who entered into an IVA had it failed by their manager or supervisor but it has been claimed previously that in some cases up to 50/60 percent of those entering an IVA fail to complete it in an orderly manner and therefore find themselves being made forcibly bankrupt at a later date.The other key statistic was that insolvencies were apparently 55% higher than during the comparable period this time last year and the smart money (to spoil the metaphor) is on the figure topping the 100,000 mark for the year.
  • Considerations Before Filing Bankruptcy - By: Jon Arnold
    Financial difficulties can occur in anyone’s life. When you think financial difficulties are more than you can handle, don’t let bankruptcy become your first thought. Bankruptcy should be considered as a last resort, not just the first thing that pops into your head when the going gets tough.
  • People on Benefits No Longer Eligible for an IVA - By: Diana Middleton
    The BBC has reported that people on UK state benefits will no longer be given an option of taking out an IVA to help pay off their debts.In an IVA or Individual Voluntary Arrangement people negotiate a repayment plan with their creditors with an Insolvency Practitioner acting on their behalf. Up to 80% of their debt is written off and interest on debt is frozen.
  • How Do Bankruptcy Loans' Requirements Work? - By: Kate Ross
    Bankruptcy loan’s qualification is not an easy task. You need to overcome serious lender’s wariness about your ability and disposition for repaying the loan you are requesting. At this stage, you need to make no mistakes, your behavior has to be stainless and you need to show the lender that the past problems that led you to bankruptcy exist no more.
  • Bankruptcy Can Be Used As An Opportunity To Start Over And Reset Your Financial Goals - By: Jon Hansen
    Bankruptcy is the last resort that neither the borrower nor the creditor wishes to meet. The impact of this to both sides is negative and long-lasting. Once you are bankrupt, it will remain on your credit report for many years, making it difficult to get any loan, insurance, or a job.
  • Information on Bankruptcy - By: Andrew Marx
    The quick and dirty definition of bankruptcy is when a person who is unable to pay their debt goes to court seeking relief. If you are the petitioner, the court must determine if your debts are truly beyond your ability to pay. Then, depending on your case, either the court discharges the bulk of your debt or sets up a payment schedule that is in your best interests but does not entirely absolve you of the responsibility of paying your creditors.