When a person finds it impossible to pay their bills, they may file for bankruptcy. Bankruptcy halts all attempts by creditors to seek payment for all debts listed in the court agreement. It is a new financial beginning, no debt, no credit history - except the bankruptcy. A decision to file for bankruptcy should be made only after determining that bankruptcy is the best way to deal with your financial problems. Bankruptcy is a difficult and personal decision; but by choosing bankruptcy, you could avoid worsening an already problematic financial situation. To refinance with a bankruptcy is possible according to HUD.
Bankruptcy will assist in dealing with a variety of financial difficulties, but the effects are not permanent. If you do decide to file for bankruptcy, take full advantage of the new financial start you will be offered, and make your future borrowing decisions with more caution. Please note that Peak Home Loans are experts at getting our clients the hassle-free, low cost, easy approval on loans with prior bankruptcies. Another thing to remember, most people have better credit than they think, at least Far Credit, keep this in mind while filling out our online form. When contacted by us, kindly ask our loan professional any question you may have. They will be more than happy to assist you obtaining a mortgage or refinance after a bankruptcy. Remember, all loans don't fit all people; if you need a mortgage loan, we'll find the right one for you.
You can refinance your home with a sub-prime mortgage lender before, during, or after Chapter 13 bankruptcy, or the first day after a Chapter 7 bankruptcy concludes. You can refinance your home with an FHA loan 1 year after filing a Chapter 13 bankruptcy. For all refinancing after a bankruptcy, you will need to show proof that you were making your payments on time every month, including your mortgage payment. Your mortgage must also be current. A low credit score should be Ok. You may only be able to borrow up to 70% of your home's value.
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Bankruptcy can make it possible to:
Bankruptcy does not solve all financial problems. Bankruptcy cannot:
Bankruptcy should be considered when:
Certain people can get a handle on their debt through credit counseling services that are easily accessed online. They can help consolidate your debt into one lump sum requiring a single, lower monthly payment, than paying bills separately. The better ones have the expertise to obtain extensions, lowered balances, lower interest rates, and lower monthly payments for you.
You can also don'thing - don't file for bankruptcy and don't seek credit counseling. However, you may run the risk of judgments being levied against you. And certain states may allow these judgments to be satisfied by taking money from a bank account, or putting a lien on real and personal property. But, judgments cannot foreclose on your homesteaded property, not can they garnish wages.
So, basically you have three ways to handle mounting debt - file bankruptcy, seek credit counseling, or simply don'thing. It is your personal choice.
There are five types of bankruptcy:
You could visit your local public library, or go to your nearest courthouse - you can usually find a public law library there. There is also a book available from the US Court System, entitled "Bankruptcy Basics." By clicking here, you can visit their site and read or print the pamphlet. You will find that bankruptcy is a serious and intriguing subject.
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"Our well-qualified mortgage experts will do whatever it takes to get you the loan you want with the best rate available, the lowest monthly payment, and the most cash if you need cash. We will work around less than perfect credit and reward those with good credit. We will do what others cannot." - Peak Home Loans, hundreds of thousands served since 1998.