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 ...

6 ways to bounce back from bankruptcy

1. Make a budget

Budgeting can be difficult, especially if you’ve never created a budget or tracked your money before. But the first step in good money management is to actually manage your money.

Whether through a spreadsheet or your favorite online platform, there are plenty of ways to track expenses and income. To start, calculate all of your fixed expenses such as your mortgage payment, home bills, insurance and anything you’re required to pay monthly. Make sure your budget can cover all of these costs.

Next, calculate your other needs such as food, clothing and entertainment. Leave room for discretionary and emergency savings, but make sure your projected spending falls within your means.

Learn more about saving money on a budget here.

2. Start using cash

Having a limited amount of cash on hand will keep you on budget and prevent you from charging more than you can afford on a credit card.

While you don’t need to use cash for every purchase, prioritizing cash spending can help you to save money. For instance, you may think twice about buying extra snacks at the grocery store if you end up being a few dollars short for necessities like eggs or milk. When your cash runs out, it’s gone.

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.