Stewart Brown Jr – Mortgage Loan Originator – Purchase or Refinance
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Losing your home to foreclosure or being forced to declare bankruptcy can take a toll on both your well-being and your wallet. If you’ve filed for bankruptcy or been through foreclosure at some point, all is not lost. If you take the right steps, it can be possible to obtain a mortgage and buy a new home.
Key takeaways from declaring bankruptcy or going through foreclosure include: The lender may want a co-signer, so keep that in mind. Check with relatives or friends who may be willing to co-sign the loan for you. Bear in mind that they will be responsible if you can’t make the payments—which could destroy your relationship with them—so do this only as a last resort. A foreclosure can stay on your credit report for up to seven years. In terms of negative credit effects, those are typically strongest in the first two to three years following the foreclosure. Over time, the impact of foreclosure on credit scores can gradually fade. You can buy a house after a foreclosure, but you will need to get your “financial house” in order. Taking the time to rebuild your credit, save for a down payment, and, as a last resort, line up a co-signer can help you prepare for buying a home. You may be able to keep your home if you file for bankruptcy depending on the type of bankruptcy and if you have equity in your home. Of course, if your home goes into foreclosure and then you file for bankruptcy, you may lose your home. Many people hit financial rock bottom at some point in their lives and end up with bankruptcy or foreclosure on their record. If that has happened to you, it doesn’t mean that you have to give up your dream of owning another home. You may only have to postpone the dream for a bit. Meanwhile, you can use that time to shore up your credit and save for a down payment. |
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Losing your home to foreclosure or being forced to declare bankruptcy can take a toll on both your well-being and your wallet. If you’ve filed for bankruptcy or been through foreclosure at some point, all is not lost. If you take the right steps, it can be possible to obtain a mortgage and buy a new home.
Key takeaways from declaring bankruptcy or going through foreclosure include: The lender may want a co-signer, so keep that in mind. Check with relatives or friends who may be willing to co-sign the loan for you. Bear in mind that they will be responsible if you can’t make the payments—which could destroy your relationship with them—so do this only as a last resort. A foreclosure can stay on your credit report for up to seven years. In terms of negative credit effects, those are typically strongest in the first two to three years following the foreclosure. Over time, the impact of foreclosure on credit scores can gradually fade. You can buy a house after a foreclosure, but you will need to get your “financial house” in order. Taking the time to rebuild your credit, save for a down payment, and, as a last resort, line up a co-signer can help you prepare for buying a home. You may be able to keep your home if you file for bankruptcy depending on the type of bankruptcy and if you have equity in your home. Of course, if your home goes into foreclosure and then you file for bankruptcy, you may lose your home. Many people hit financial rock bottom at some point in their lives and end up with bankruptcy or foreclosure on their record. If that has happened to you, it doesn’t mean that you have to give up your dream of owning another home. You may only have to postpone the dream for a bit. Meanwhile, you can use that time to shore up your credit and save for a down payment. |
Reach out to me for further detailed information on bankruptcy or foreclosure.