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
http://www.vaildaily.com/news/9876116-113/mortgage-loan-credit-months
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
http://dealbook.nytimes.com/2014/01/25/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
http://www.nytimes.com/2014/01/26/business/the-gadfly-of-greenwich-real-estate.html?hpw&rref=business
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'
http://triblive.com/news/allegheny/5463483-74/center-million-august
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

www.thezerodownloan.com FHA After Bankruptcy, Foreclosure, Short sale or Loan Mod USDA, VA or Conventional After Bankruptcy, Foreclosure, Short ...

You think you know bankruptcy, but you may be surprised

No one wants to be in the position of filing for bankruptcy. On top of the obvious financial stress and anxiety, those filing for bankruptcy also face the stigma of being considered a “deadbeat” who doesn’t pay their bills.

While there certainly are people whose bad choices led to their financial predicament, the reality is that many people who find themselves considering bankruptcy had little or no control over their financial losses and debts. Unexpected medical illness, divorce, job loss, a downturn in the economy — any of these can place significant financial pressure on an individual or a small business.

From there, the effect can snowball. An inability to pay debt obligations leads to lawsuits, garnishments, foreclosures, liens … the list goes on. These difficult circumstances have nothing to do with someone being a “deadbeat,” and a bankruptcy is sometimes the only way to navigate these issues and get someone back on their feet.

Making an offer: Avoiding common mortgage missteps as a first-time buyer

You should also be prepared to know how much cash you would be able to put down on a house, and how much house you can actually afford. Most lenders use the “28/36 rule,” where your monthly payment on your mortgage is no more than 28 percent of your gross income, and your total revolving debt payments are no more than 36 percent of your gross income. Depending on your financial situation, there may be assistance available to help with a down payment.

“The most common minimum down payment most buyers should plan on is at least 3 percent of the purchase price. There are some fabulous down payment assistance programs that will allow the borrower to take out a no interest second mortgage payment up to $6,000 that can help cover down payment and closing costs. Some buyers can get into a home for as little as $1,000. These programs are structured for first time home buyers with low to moderate income,” says Laura Kidd, loan officer with Fairway Independent Mortgage Corp. in Allentown.

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.