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Home Equity Loan After Bankruptcy – The Secrets you need to know

January 14th, 2011

Is it possible to get home equity loans after bankruptcy?

Bankruptcy will be the last thing many would want to experience financially. This would cause a big drop in their credit score and completely affect all the future chances of getting loans. Lenders who do a credit check through teletrack would immediately reject the loan application after they find bankruptcy in their record. But there are solutions available to you. One of the best solution for such people are the home equity loans.

Why is home equity loan the best solution?

Home equity loan is the best solution because the lenders are risk free in giving away these loans to the borrowers. This is because you are providing the home as a security to the lenders. Thus, you can find better loan offers through these loans. These loans can be used for any purposes such as consolidation, emergency medical expenses etc, . These loans are perfect solutions for people having a very poor credit rating. Since these loans are secured, no one would have any difficulty in getting them.

Points to remember:

Although it is easy to get home equity loans after bankruptcy, you should not get the very first loan offer you receive. You must take ample time in getting quotes from various lenders and do comparison between them all. This way, you can get the best deals. Another advantage of these loans is that they are exempt from taxes. There is also an additional advantage in getting these loans. These can be used to rebuild your credit rating. You can take all possible actions so as to make the payments without fail.

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Home mortgage loans before bankruptcy – Is it possible?

December 18th, 2010

If you’ve fallen on bad times in the past, and been forced to file for bankruptcy, then you will have a mark on your credit rating that may make it difficult for you to find a home loan. Your credit problems in the past may make lenders skeptical of your intentions this time around, making them question your ability, and willingness to pay back any loan. There are some lenders who specialize in providing home loans for people who have had credit problems in the past, and these lenders will be more willing to overlook past mistakes.

Bankruptcy Doesn’t Stop You Buying a Home

Lenders are becoming more understanding when it comes to bankruptcy, and are often willing to consider that there are several reasons that someone would need to file for bankruptcy – unexpected job losses, and large medical bills, for example, are problems that people cannot foresee, and could lead to debts piling up unexpectedly. Many lenders are willing to consider people who have been bankrupt in the past but have had their bankruptcy discharged, and have conducted their finances well since then.

There is a current trend in which more and more home loan lenders are becoming more competitive for your business. This is good news since the final result will be that you may not be subjected to ridiculously high interest rates as was the case in the past. Many lenders are realizing that bankruptcy home loans is good business, so consumers who may have experienced financial trouble in the past are no longer forced to give in to the high demands of many financial institutions. There may be a requirement that you wait for a period of time after your bankruptcy has been filed. This gives the lenders an opportunity to asses your money management habits after bankruptcy.

Plead Your Case In Writing

When you apply for a home loan, the lender will perform a check on your credit history as a part of the application process. If you have previously filed for bankruptcy, this will appear on your credit rating, and could go against your application. You can increase your chances of getting accepted by sending a letter with your application, explaining your circumstances. This lets you plead your case to the lender, and will show them that you are taking the application seriously. Don’t despair if you can’t find a lender straight away – bankruptcy home loans are being approved every day, and you will find a lender that will be able to help you. Before you apply to a lender, ask them what their policy is – or search for information online – a few targeted applications will look better on your credit record than having lots of ‘footprints’ indicating that you have been applying for loans from lots of different lenders.

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Getting Home Loans After Bankruptcy

December 9th, 2010

Many people, once they have filed for bankruptcy, tend to think that their world will come to an end. While this could be true to a large extent, it could also be true that it can be the beginning of a new life. This is when you learn how to carefully manage your finances and to build your credit worth.

One of the ways in which you can rebuild your credit worth is by applying for credit facilities. How does acquiring more credit help you out of your bankruptcy situation? Well, simply put, this is an opportunity to prove to the banks that you are credit worth. You can achieve this by making your monthly payments on time and making sure that you do not overdraw from your new savings account.

Some of the firms that you could approach for credit facilities are mortgage firms. They normally have no strict restrictions when offering loans to bankrupts. This is because they are assured that the house you are going to buy will act as security for the loan. In case you default from payment, they could always recoup the property.

Some firms will require you to give some down payment for the loan while others will not. If this is the case and you have no idea where to get this initial amount, you could do with a few tips. You could consider borrowing money from friends and relatives in the form of gifts. If you intend to treat the money as loan, you must make this known to the mortgage firm. You could also make use some programs that help people in making advances, such as Neighborhood Gold or the Nehemiah program.

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Buying a home Mon Bankruptcy – Get Mortgage Loan Bankruptcy

November 29th, 2010

If you have a recent bankruptcy on your credit and are looking to get financing for a home, there is hope. Buying a home with bad credit will just put more emphasis on the other two factors needed to get a mortgage loan, which are; income verification and a down payment.

After bankruptcy most lenders want you to wait at least 2 years from the time of the bankruptcy discharge before they will consider you for a mortgage loan. After the two year waiting period is over, you should be able to get financing easily. You should also be able to get 100% financing as well. You can usually achieve this as long as at least most of your payments have been reported to the credit bureau as having been paid on time since the discharge of your bankruptcy.

If you are looking to get a mortgage loan after bankruptcy sooner than the 2 years from the time of discharge, you will need to have almost flawless payment history since your bankruptcy discharge. Also, you may need to have a down payment. If you have even 3-5% to use as a down payment, that may be enough to help you get approved.

There are ways to get a down payment for your mortgage besides having the money saved in the bank. Here are some ideas of ways to do that:

1. Borrow or ask for a gift from relatives. After you have financed the house, you can usually go and take out a 2nd or 3rd mortgage up to the full value of your house, and then you could repay the relatives. Keep in mind that if you intend the money to be as a loan only from the relatives, you would need to disclose that to the lender before you close. Lenders usually have regulations about where the down payment is coming from and if you are not honest, it could be considered defrauding a lender.

2. There are down payment assistance programs like Neighborhood Gold or the Nehemiah program. These programs basically aid the seller in helping you with a down payment. Receiving a down payment from the seller of the property is illegal, but through these programs, it is legal. There are also other down payment assistance programs which are grants and do not need to be repaid or paid for by anyone. To find out about these, do a search on “down payment assistance” with your favorite search engine.

3. You could cash out a 401K or another investment and like in the first example, repay yourself with a 2nd or 3rd mortgage after the loan closed.

Mortgage loans bankruptcy are getting to be a lot easier to get these days. If you want to see a list of our preferred bad credit mortgage lenders, visit this page: After
Bankruptcy Mortgage Lenders.

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Home Loan modifications, bankruptcy, and HAMP

November 26th, 2010

The third quarter of 2009 saw a record number of foreclosures across Arizona according to RealtyTrac, an online marketplace for foreclosure properties. For the fifth quarter in a row, Arizona ranked second behind only Nevada with one out of every 55 homes threatened by foreclosure. In the Phoenix area alone, 2009 foreclosures jumped 158% over the 2008 figures.

While the first round of foreclosures in 2008 could be blamed on the meltdown in the subprime mortgage industry, subsequent rounds of foreclosures spoke to a deeper malaise in the national economy. With national unemployment statistics hovering officially at just under 10%, many previously credit-worthy individuals just couldn’t afford anymore to keep up with their mortgages. And with a large scale de-escalation in the true value of real estate, many individuals found themselves saddled with mortgages that cost them way more than any equity they had in their properties and simply chose to walk away from these “underwater” homes.

In March 2009, the federal government introduced a new program called Making Home Affordable (HAMP) which allows qualified borrowers’ existing loans to be modified so that borrowers are paying no more than 31% of their gross income towards their mortgages if their loan servicers are participating in the program. Other remedies also available to qualified homeowners include interest rate reduction, repayment period extension and deferrals, and even principal forgiveness in some cases.

But qualifying for the HAMP program is a complicated process. First the program is only available to homeowners with loans taken out before January 1, 2009 in the amount of $729,750 or less. Second, your loan servicer will review your financial history in minute detail and you may be required to attend financial counseling.

And what if other financial exigencies have forced you to consider filing for either Chapter 13 or chapter 7 bankruptcy? Can you still be eligible for a loan modification under the HAMP program?

Yes, you can be considered for a HAMP modification even with a Chapter 13 or chapter 7 bankruptcy on your credit report, but you will need to consult with an experienced bankruptcy lawyer who can help you obtain the reports and other information your loan servicer will have when they are determining whether you are qualified for HAMP. Whether you are a Phoenix homeowner looking for a bankruptcy lawyer in phoenix or an Arizona homeowner looking for an Arizona bankruptcy lawyer, a qualified bankruptcy lawyer can assist homeowners facing foreclosure by allowing them to view themselves through their loan servicers’ eyes. If you are the one of those homeowners being threatened by foreclosure, you are well advised to call an Arizona bankruptcy lawyer or a bankruptcy lawyer in Phoenix as soon as possible.

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