Bankruptcy > Mortgage After Bankruptcy

Mortgage After Bankruptcy

Most people probably assume that obtaining a mortgage to purchase a home, refinance or to consolidate debt after a bankruptcy is out of the question. In fact, many people are able to obtain these mortgage services, even 1 day after a bankruptcy discharge in some cases. Loan programs and lenders are available that require little or no time after the discharge of a bankruptcy. Here are a few tips to speed up the road to credit recovery and the mortgage services you desire. First, continue timely paying on items such as your home and cars that were not discharged in the bankruptcy.

Having at least a couple credit items you are paying on- time will help. Second, limit the amount of other debts such as credit cards or bank loans. Too much debt will make it more difficult to qualify for a loan, particularly revolving credit accounts such as credit cards. Your debt-to-income ratio is one part of the puzzle lenders will look at in determining your ability to repay a mortgage. Another important aspect is providing all necessary documents in a timely manner to your loan consultant.

Items such as paystubs and tax returns are generally needed in order to establish your income and show the ability exists to repay the loan. Information on your credit report needs to be checked for accuracy. Items that you feel are inaccurate need to be disputed in writing with the three major credit repositories. (Equifax, Experian and Trans Union). This may take persistence to ensure the items are removed appropriately.

The removal of this inaccurate information will help establish a more favorable debt-to-income ratio and make the process of qualifying for a loan easier. Finally, if you are unable to qualify for a loan initially, do not despair. Sometimes this process requires a little patience. Follow the tips mentioned earlier and more options are usually available 6 months to a year after the bankruptcy discharge. Your Amerinet Loan Consultant can help guide you through this processRead more about Dallas Bankruptcy And Mortgage http://www.bankruptcyhome.com/dallas-bankruptcy.htm.

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Types of Bankruptcy Filings

Jumbo mortgage This is considered a nonconforming loan because it exceeds the loan limit set by Fannie Mae and Freddie Mac. The 2003 single-family loan limit is $322,700. The maximum loan amount is 50 percent higher in Alaska, Hawaii and the U.S. Virgin Islands. Balloon mortgage With these, borrowers get lower rates and payments for a specific period of time, which usually is anywhere from three years to 10 years.

At that point, a borrower has to pay off the principal balance in a lump sum. Assumable mortgage Assumable mortgages are relatively rare. A homeowner with an assumable loan can "hand off" the loan to a buyer instead of paying it off using proceeds from the home sale. If rates are low and you can get one, by all means do so. If rates rise, buyers will want to assume your loan (and will be willing to pay more for your house!) because it'll be much cheaper than any loan they could get from a bank or other source.

Subprime mortgages These loans have higher rates and...

Types of Bankruptcy Filings

Bankruptcy > Types of Bankruptcy Filings

There Are Two Types Of Personal Bankruptcy, What Are They?

There are two different types of personal bankruptcy that an individual can file, Chapter 7 & Chapter 13.
Chapter 7 allows you to disburse of most or all of your debts at the time of the court ruling. This method, however, has more of a negative impact on your credit rating and will stay with you longer?up to ten years. People who file Chapter 7 personal bankruptcy are considered to be a much more credit risk then those who file Chapter 13 personal bankruptcy.
In a Chapter 13 personal bankruptcy filing you pay off your debts in what is known as reorganization.

Through the courts, a court-appointed trustee will determine your new standard of living and how much of your income will be given to you to live on and will divide the rest among your creditors each month. For the next three to five years, you will have to live on a strict budget while your debts are getting paid. At the end of the reorganization your debts are considered paid in full, however, the record...

There Are Two Types Of Personal Bankruptcy, What Are They?

Bankruptcy > There Are Two Types Of Personal Bankruptcy, What Are They?

Types of Bankruptcy Filings

Subprime mortgages These loans have higher rates and...

Types of Bankruptcy Filings

Bankruptcy > Types of Bankruptcy Filings

Ten Ways to Get Out of Debt

1) Use your AssetsIf you have assets with some significant equity, such as a home or a car you may be able to use these to get control of your debt. For example, you could get a loan on your home sufficient to pay off your debts. You could be saving a considerable amount of money on interest if you pay off high interest credit card debt in return for lower cost debt.If you have a car, consider selling it, paying off your debts and buying a cheaper car. Be careful though! Your don't want a "cheaper" car that will cost you a fortune in repair costs.2) Get a Second JobUse the money from this job to only pay off your debts. List your debts noting the interest rates.

Pay off the debts with the highest rates first and work your way down the list.3) Put your Credit Cards on HoldOne of the best steps you can take to get out of debt is to immediately stop using credit cards. At the very least destroy all your cards keeping just one card for emergencies.4) Set up a Repayment PlanCut back...

Ten Ways to Get Out of Debt

Bankruptcy > Ten Ways to Get Out of Debt