Most often a person will only file bankruptcy after having exhausted all other options. However, there are certain key reasons that will affect individuals and cause them to file for bankruptcy, which include high debts as well as long non-payment history. Keep in mind that it is a lot harder to get a loan after bankruptcy has been filed, which can affect your ability to purchase a much needed house or car during the ten years after the filing, when the bankruptcy can appear on your credit history.
Stay Positive and do not get Rattled
Mortgages and bankruptcy need not be an insurmountable problem, because there are methods for working through these obstacles. Making an appointment with a credit counselor that provides assistance in getting a mortgage after bankruptcy is a good option. Getting a mortgage after bankruptcy is possible if the person has a positive outlook, and plenty of persistence and patience.
Mortgages and bankruptcy are not conditions that mutually exclude one another, since a bankruptcy on the credit history can affect your ability to get a mortgage loan. One way around this is to provide your prospective lender with a letter of explanation regarding the circumstances of your bankruptcy. Even though the interest rates are higher, lenders do take the initiative in making it easier to obtain a mortgage after bankruptcy. They may consider the debtor’s repayment history, or the circumstances regarding the bankruptcy. For example, a sudden and severe health issue that contributed to the financial problems might make it easier to get a mortgage after bankruptcy. Getting expert advice from an attorney regarding mortgage and bankruptcy is recommended, as well as selecting the right mortgage provider that will be willing to work with your individual situation.
With online communications and electronic commerce, it has become much simpler to research and find available financial options regarding mortgage and bankruptcy. With e-mails and toll-free numbers, a debtor can get the facts pertaining to mortgage and bankruptcy, and customer care executives will always have the latest information. Most credit counselors will enjoy good relations with mortgage providers and will be of help under such circumstances.
In the final analysis, bankruptcy is no doubt devastating to personal finances; however, one can still get back on track since bankruptcy does not last forever and rebuilding credit should go a long way in getting a mortgage even after bankruptcy. The debtor should work to rebuild his credit rating, prepare the mortgage application and comparison shop for the best mortgage loan. Mortgage and bankruptcy can easily be overcome with these simple steps.
http://www.refresharticles.com/articles/bankruptcy/mortgages_and_bankruptcy.TXT
