We are all familiar with the fact that there are lots of people who are finding it difficult to cope up with their monthly credit payments, with the collapse of the economy and the current state of the real estate market. It is not surprising for a lot of them to end up filing for bankruptcy. But there are also a lot of others who are not familiar with the way that they can release themselves from their debt.
But one thing seems to be missing especially for people who have been playing the scenario for quite some time now and now having a hard time paying even the smallest amount of mortgage. Take a look at this: nearly every bankruptcy attorney out there will tell you that you need to get a house. An additional single for you to consider when on all of your credit cards and other loans including your mortgage should be cleared from your accounts. Filing will then be easier and your file will be quickly transferred to the top of the file if and when bankruptcy is filed.
But the thing here is that getting a home mortgage is not as easy as it seems. Getting it as soon as possible will mean that you must make sure that your credit score will be outstanding.
You can’t get it before your bankruptcy has already been filed nor after the bankruptcy has been discharged. One common thing is that you need an excellent credit score which is marked by a lot of lenders as a good borrower. So this is why you need to have read the previous paragraphs and found out that your credit history is good, which means that after your bankruptcy has been filed the other creditors should be glad of getting their money since you have shown them that you are capable of repaying them. This is why you cannot apply for a mortgage right after your bankruptcy filing has been filed nor would it be easy for it to be approved. Neither are there any lenders who would consider you as capable of repaying the debts once they are still in your bankruptcy file.
In the very first breath, this should be apparent to you, because the first thing that you have to remember is that you are not yet the homeowner. Once you have filed for bankruptcy there is no way that you can ever be considered the owner of your home. At this point in time, you can’t get a mortgage to be approved. Of course, the house you are eyeing for acquisition is now out of buying range.
So what should you do to be able to acquire a home even sooner than two years after the bankruptcy has been filed? There are answers to some of your most usual questions.
First, pay all your credit card bills so that it shows that you can still reduce your debts even if you are having a lot of difficulties, which is the reason why you should keep all those credit card bills as the last thing because it will help you be paying your other unsecured credit lines and loans. This helps offset the risk involved for the lender when they have to recover the losses in case there is a faster recovery, or in the first crisis point where you finally filed for bankruptcy even before the bankruptcy filing has been filed yet.
Second, make sure that you have already established all of your fixed assets. In short, they should be free of liens or bonds so that it will be easier for your lender to recover the losses during your bankruptcy filing. While all of this is in place there are two things that you need to do.
The first is to contact your bankruptcy attorney or file for bankruptcy yourself and ask for a postponement of the payment plan, which allows you the chance to have low monthly payments until you have alternatives till you themselves manage to build up equity in their assets. In order for you to be eligible for this option for mortgage lenders, you must be meeting all your monthly obligations, thus you will have to ask them for this option, as it may not be often been available.
The second thing you have to do is to ask for the postponement of your home loan payment. It is not a great idea for you to make any mortgage payments. You have to remember that your home will not be your first priority in case things begin to go wrong. Aside from a fact that the money you can save for the mortgage would be used to pay back the loss in case that you lost your job.
These two steps will reduce your burden for quite some time and things will begin to go back to place easier. In case you had started a preliminary workout, you may not get the opportunity to go ahead with it if you are not able to convince the lender. In addition, you may also be rejected the opportunity to purchase a home. But these things will not really do much harm to your credit record as long as you are able to keep up with timely payments of your other unsecured credit lines as well.