วันจันทร์ที่ 9 เมษายน พ.ศ. 2561

Getting A Mortgage After A Bankruptcy

Bad things happen to good people and one of those bad things is a bankruptcy. Consumers don't have a bankruptcy as part of their future financial picture; instead a bankruptcy is the result of some event outside the control of the borrower. Some of the more common reasons for a bankruptcy are a death in the family, a divorce or extended unemployment.

Yet bankruptcy does provide the consumer with a fresh start; a way to re-establish themselves in the world of credit. Mortgage lenders understand that, too. Just because a bankruptcy might stay on a credit report for seven years or more doesn't mean one has to wait that long in order to get a mortgage.

Conventional loans underwritten to Fannie Mae and Freddie Mac standards require that the bankruptcy be discharged for at least four years before evaluating a mortgage application. Government-backed mortgages such as VA, USDA and FHA loans ask for two year's waiting period.

In fact, ฝากขายคอนโด in the instance of a Chapter 13, FHA loans can allow for a mortgage with less than two years since the Chapter 13 filing as long as the bankruptcy trustee agrees to the plan.

However, even as lenders will consider a mortgage application after a bankruptcy it is absolutely critical that negative credit is a thing of the past. Credit must be re-established after a bankruptcy with such things as credit cards and card payments but if there are any late payments after a bankruptcy, lenders are not very enthusiastic about approving a loan under those conditions. That's a nice way of saying that without a solid explanation for a single late payment, the mortgage application will be denied.

Bankruptcies allow for second chances and so do lenders. But the path to recovery must be taken seriously in order to be considered for a future mortgage.


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