Question by sadonnac: If you file bancruptcy can you ever refinance your home?
I have to file bankruptcy but I still own my home, how long will i have to wait before a mortgage company will talk to me about refinancing my home?
Best answer:
Answer by M M
Although times have changed, you may be able to refinance pretty quickly, You’ve re-affirmed your home, hopefully it is worth more than you owe on it. If you’re employed, you may be able to refi within a very few months.
Give your answer to this question below!
I know it use be 7 years, but now a days, you could get a loan after a year or 2, but with much higher interest. The only thing is, with the way the economy is now, it’s had to say what they will do.
People will be aware of your bankruptcy for 7-10 years. How excited would you be to loan out your hard earned money to somebody who skipped out on thousands of dollars they owed to someone else? That’s how future lenders wil feel about you. And with the current economic situation they would be even less likely.
My bankruptcy and foreclosure took place in 2003. I had a new home and loans in two years. One loan was a conventional 80% at 6.5% rate. The second was a 3/1 arm, I forget the rate, something like 7.5% for the remaining 20% of the home.
I worked my tail off to pay off the arm in two years, then refinanced again, and got a 5.875% rate on a 15 year loan. It is possible to get loans, may be not like in the past two years, but you have to want it, and beat the streets looking for someone to take your case.
But this time, you need to change…..do a budget, work 1 and a half jobs…..don’t get in the same binds…..be frugal and show the world or just you that you can make it. Good luck to you.
One can refinance a mortgage from the seventh month of the date of declaring bankruptcy. Even though refinancing is a suitable way to resolve financial problems, improper management can make the existing financial problems even worse than the past.
Refinancing the mortgage after bankruptcy is similar to replacing it with a totally new mortgage. Bankruptcy loan refinancing is primarily resorted to in order to obtain a lower interest rate and save money. Bringing down the mortgage payments and consolidating all the bills can definitely make a considerable difference in the financial situation of a person. Bankruptcy loan refinancing also helps in reestablishing the credit to a good standing within a short time.
Before refinancing bankruptcy loans, one has to prepare well to establish a good payment history. This can be easily done during the six months from the period of bankruptcy by opening a credit card account. In addition, start building up a savings account. Once a person decides to move forward with refinancing, he has to conduct research regarding mortgage lenders and their rates. Most mortgage lenders favorably consider refinancing after bankruptcy since it involves fewer risks.
Since lenders offer hundreds of loan programs, it is very easy for an individual to secure bankruptcy loan refinancing. Searching online is the easiest way to get various quotes from multiple lenders and to find the most competitive lender. Also, get in touch with lenders who are experts in refinancing mortgages after bankruptcy. They will help you in finding the best refinancing package available in the present market. It is worthwhile to take expert advice that can assist you in choosing an appropriate plan.