Review Mortgage Lenders

Obtaining a mortgage after bankruptcy

In the past, obtaining a mortgage after filing for bankruptcy was next to impossible. It took at least somewhere between seven and ten years for a person`s credit rating to recover and even then, some lenders still took a negative view when a past bankruptcy showed up on a mortgage application. But now, with so many people struggling in the current financial climate, a bankruptcy is no longer the end of the line for someone looking for a loan.
In some instances, a person can look to apply for a mortgage in two to three years after filing for bankruptcy. However, it is important that the applicant take the time to stay on top of the situation and keep an eye on their credit score along the way. It may not be easy, but it is possible to become a homeowner despite past financial difficulties.

The Credit Score

Everyone knows that a credit score tends to make or break a person`s chances for a mortgage. Bankruptcy could have taken a nice bite out of the score, but there are ways to make improvements and show that things are getting back on track. Make sure to check the credit report offered by each of the three reporting agencies. Look through each lending instance and double check the information for accuracy. If there are any problems, have them addressed as soon as possible. Most of the time this means sending in a letter to the agency along with proof that things are different to what the report reflects.
Secured credit cards are an easy way to show the correct management of debts. It takes time, but it will show up on the credit report with positive results when used correctly. If a lender is not sure about allowing a person a mortgage, seeing a secured credit card and improvements in recent credit activity can give the applicant a better chance of success.

Starting the Application Process

About two or three years after filing for bankruptcy, a person may be ready to take the next step and apply for a mortgage. If the credit reports are accurate and there are improvements that can be seen, a lender may be more apt to go ahead with the process. Ideally, applying for an FHA or VA loan is a great start. Less money down is required and the lending requirements are often a little more manageable for someone with a tough financial background.
It is important that an applicant be able to explain what financial difficulties were faced, how they were handled and what improvements have been made. A lender is going to want some type of reassurance that they are making the right choice by going ahead with the loan.
Once the mortgage is approved, this is a great opportunity. Making the monthly payments on time means improving the credit score and making some real changes in a person`s financial future. Whether the purpose of the bankruptcy was credit card relief or dealing with medical bills and other types of loans, it is still possible to get approved for a mortgage and move into a home in the near future.

Obtaining a mortgage after bankruptcy - News

Vail Daily column: How poor credit can impact getting a mortgage loan
If you filed Chapter 7 bankruptcy, then you might be eligible for a mortgage within 24 months if there were extenuating circumstances or 48 months if there were not any. If you filed Chapter 13 (meaning you made payments to your creditors to partially

The Tale of the $8 Million 'Bargain' House in Greenwich
But it ended up in the hands of his neighbor, Richard A. Baker, the chief executive of the firm that owns Lord & Taylor and Saks, who snapped it up for $8 million after Mr. Fuscone had to declare bankruptcy in 2010. In the competitive insulated world

The Gadfly of Greenwich Real Estate
And his blog, For What It's Worth, has attracted a cult following among those he lampoons — the financial titans who can afford to plunk down $5 million or more on a house but who nonetheless seem to appreciate his scabrous take on Greenwich residents

Pittsburgh's August Wilson Center: 'Classic mistake'
Although RAD has provided about $3.5 million for center operations beginning before the facility was complete, Donahoe said he harbored concerns for years after getting a glimpse at the organization's business plan. “I remember seeing some

Rules For Qualifying For a Mortgage After Bankruptcy, Foreclosure, Short Sale, Loan Mod FHA After Bankruptcy, Foreclosure, Short sale or Loan Mod USDA, VA or Conventional After Bankruptcy, Foreclosure, Short ...

How to Get Out of Debt

1. Understand how debt works

Before you can figure out how to get out of debt, you need to understand how debt works. When you're in debt, of course that means you owe money -- but there's a lot more to know than that.

First, when you borrow money, you usually have to pay it back with interest. The amount you borrow is called the principal, and interest makes the principal balance grow. For example, if you borrow $100, you don't just pay back $100 -- you pay $100 plus interest. The specific amount of interest you're charged depends upon:

Your interest rate , which is based on a percentage of what you borrow, such as 10% interest. Your rate could be fixed, which means it always stays the same, or variable which means it can change periodically. Variable rates are usually tied to a financial index, such as the LIBOR index.  How often interest compounds .

How to Protect Your Credit During a Divorce

Chanette Sparks, 35, of Raleigh, North Carolina, still struggles with the damage her divorce inflicted on her financial security—10 years after she and her husband legally ended their relationship. Before her divorce, Sparks' credit score was around 700. Today, it’s closer to 585, and she can’t wait to see it move into the 600 range.

“The divorce left me financially conflicted for a few years, because my ex-husband handled everything with money, and together we have three children,” she said.

The sad reality is that Sparks is far from alone in discovering she was ill-equipped to handle the financial difficulties of divorce. According to research from UBS Global Wealth Management , 56% of married women said they handle the day-to-day finances but leave key investment decisions to their husbands. This number is actually higher when you look at just millennial women—61% let their partners take the reins on family finances. And 59% of women who find themselves divorced or widowed express regret over not being more involved in long-term financial decisions during their marriage.

Is it still possible to obtain a mortgage with a low credit score?

I have bad credit (score about 458) and my husband has no credit. Is it still possible to obtain a mortgage and if so, what type of documentation will I need to gather before I apply.

There is a credit crisis going on, and with a score that low, it is nearly impossible for you to get a mortgage. 458 is an extremely low score. You will need to get your score closer to 640 to have any chance at all.