Posted: Fri Dec 23, 2005 2:24 pm Post subject: Is it possible to refinance after bankruptcy?
I filed bankruptcy was declared two years ago. How long will it take to refinance at a lower rate? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
I don't think you need to wait too long. Only after six months from the date your bankruptcy was declared, you may find lenders agree for the deal. In the mean time you can look around to make a list of good lenders in the market.
You will be able to go for after bankruptcy mortgage refinance now although in case of a ch.7 bankruptcy then it will stay on you credit report for 10 years and it will stay up to 7 yrs. in case of a ch.13.
You will definitely find lenders agree to refinance but you may not get it easily as with normal case, and the rate will also not be that lower. Generally lenders agree to give you loan after two years provided you are current on your bills.
You can take the help of a broker to find a suitable lender but do keep your eyes to get the maximum facility.
Posted: Wed Dec 28, 2005 12:07 am Post subject: Home loan after bankruptcy
You may have taken a lot of debts and failed to cope up with the payments, but even then, you may still apply for a mortgage or a refinance loan. Most lenders will not prefer to offer you a home loan when you have filed bankruptcy. They consider it as a great risk to offer you a mortgage which will take up a lot of your cash reserves for its repayment. Even then, you will find subprime lenders coming up with loans offers at comparatively higher rates and you have no choice but to accept that.
In general, most lenders won't approve your mortgage unless 2 years have passed since you have filed bankruptcy. This will actually benefit you in the sense that you can rebuild your credit history in the meantime. The best way to start off is to take a credit card and make regular payments on it. Your creditors will thus be convinced that you can manage small payments.
You will have to maintain good payment habits if you wish to take a mortgage or intend to refinance your previous loan after bankruptcy. Taking a mortgage or refinance loan after declaring bankruptcy will help you to re-establish your credit status provided you make timely payments. Moreover, with a refinance loan you can obtain a low rate on your existing mortgage and build up your savings.
Re-establishing good credit is easier with a Chapter 13 bankruptcy, as you already make payments to clear a part of your debt amount. Creditors come to know that you are at least trying to pay down your debts. This is not possible with a Chapter 7 filing that helps in discharging all your debts and you have to pay for none.
A chapter 7 bankruptcy stays in your credit report for 7 years and Chapter 13 gets featured in the report for about 10 years. And, bankruptcy creates a negative impact on your credit report, so that you don't qualify for mortgages at better rates. But if you practice regular payment habits, then getting the best mortgage quotes won't be that difficult. You may take help and support from credit counselors who will be willing to guide you in return for a nominal fee.
Posted: Wed Dec 28, 2005 9:21 pm Post subject: RE:
Hi,
I think if it is possible you should wait for two years after filing bankruptcy. Because after one year if at all you get a lender it will be a sub-prime lender who will refinance your mortgage at higher interest rate. And therefore instead of gaining anything out of refinance you will loose some money.
Posted: Wed Dec 28, 2005 9:41 pm Post subject: RE:
Hi Peanut,
What Jerry says is correct. I would suggest that you wait for at least 2 years of your bankruptcy filing. This will give you some time to improve your credit score and later on help you to avail loans at comparatively lower rates. You will be getting loans from lenders other than subprime lenders and therefore you will be able to avoid paying high interest.
If you can wait till 2 years after your bankruptcy filing, then within this period, I would suggest, that you take a credit card and make regular payments on it. This will help to repair your credit history. And, then you will be able to get refinance loans at lower rates.
Posted: Fri Jul 28, 2006 9:16 am Post subject: what papers we require
hi i have a question here that if somebody is in bk chpter13 and wants to take loan to pay BK off; then what documnets he needsto submit to lender reagrding his bankruptcy bcos normally he doesnt have any docs and all docs stay with his attorney who are not that big help. so whats the best way and what are the docs reqd _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
Posted: Fri Jul 28, 2006 11:08 pm Post subject: RE: Documents required for getting loan in Chapter 13
Hi,
It's not easy to qualify for loans in Chapter 13 Bankruptcy. One to pay higher rates of interest as a bankruptcy has negative impact on his credit score.
While an individual is following the repayment plan in Chapter 13, he should contact any of the credit reporting agencies - Equifax, Experian and TransUnion to update his credit report with the latest payments. This will help him to convince the lender that he has started to build up good credit after filing the bankruptcy.
When he submits the documents, a copy of the credit report should be given to the lender. Even if the documents are with the attorney, one should have copies of documents like proofs of income, past credit payments, assets, etc. All such documents should be submitted to the lender.
Posted: Sat Oct 27, 2007 12:57 pm Post subject: Your new home loan after BK
Yes, you can refinance after a bankruptcy - I can find you a loan 1 day after discharge but the rates are not pretty. Your best case is to have been discharged (goes by the date of discharge not when you filed) at least 2 years for chptr 13 & 4 for chptr 7. Now, if your bankruptcy was due to extenuating circumstances (divorce, job loss, sickness etc.) you will be alright @ 2 yrs with a chptr 7 as long as you have re-established credit and have not been late on anything - remember after a bankruptcy you must remain squeaky clean on your credit & rebuild your credit through new credit cards (keep your balances below 35% of your credit limit!) & car loans etc.
[Promotional text deleted as per forum rules. Thanks.] _________________ Lisa Marie Oglesby
Mortgage Professional
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