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Refinancing Your Mortgage after a Bankruptcy
By
C.L. Haehl
If you were
lucky enough to save your home during the
bankruptcy process, you may wonder what it
will take to be able to refinance and start
fresh with a new mortgage. Here are some
facts about refinancing after a bankruptcy
to help you:
Conventional Lenders Will Require Two
Years of Bankruptcy Seasoning
You will need to be two years removed from
your bankruptcy to be considered for a
refinance loan by conventional lenders
backed by Fannie Mae or Freddie Mac. For
Chapter 7 bankruptcies, the two years start
the day after your bankruptcy is discharged;
for Chapter 13 bankruptcies, your two years
start the day you file.
Sub-prime Lenders Will Help You
Thankfully, the mortgage industry has other
options to assist you. Most mortgage brokers
have access to wholesale lenders that
require far less than the two years
bankruptcy seasoning. In fact, there are
many sub-prime lenders who will fund a loan
for you the day after your Chapter 7
bankruptcy is discharged. Other sub-prime
lenders offer refinance loans as a way to
satisfy your Chapter 13 bankruptcy and get
it discharged.
Mortgage Payment History Is What Matters
The most important factor in refinancing
your mortgage after a bankruptcy is your
mortgage payment history. After a bankruptcy
it is imperative that you do not make any
30-day or greater late payments. With twelve
months of perfect payment history, you will
show prospective mortgage lenders that you
are serious about reestablishing your
credit. It is of the utmost importance to
prove that you are serious about paying your
mortgage on time.
Although filing a bankruptcy is an extreme
financial move that nobody wants to make,
you should not feel that you are doomed
afterwards. Within one to two years of solid
payment history, most doors will be reopened
to you.
Conclusion
Are you one
of the many that suffer from insurmountable
debt and wonder if bankruptcy is an option?
Give us a call at (203) 924-6700 or
contact us.
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At these seminars an attorney will personally go over your
mortgage looking for a defense