Even if you’ve had a bankruptcy in the past, becoming a Florida homeowner is still possible. Many people in Florida may receive a mortgage after filing for bankruptcy. Mortgage lenders understand that no application is flawless, and they have procedures in place to help people become homeowners. After bankruptcy, it is doable to refinance your mortgage, but it will take longer.
Bankruptcy can help those who are having trouble managing their debts by arranging a new repayment plan or selling assets to pay back what they owe. In exchange, they will receive a negative mark on their credit report, which will result in a much lower credit score. Even yet, filing for bankruptcy doesn’t mean you can’t save money by refinancing your home.
Obtaining fresh credit
After filing for bankruptcy, obtaining credit is smoother than most people believe. It’s fairly uncommon for people to be approached with credit card offers soon after filing for bankruptcy. When you think about it, one of the elements that determine your creditworthiness is how much other debt you have.
You have strengthened your capacity to pay off any new obligations after receiving a Chapter 7 discharge since all of your prior unsecured debt has been discharged. however, before taking on any additional debt, you should consider your financial condition and ensure that your monthly income is adequate. And, especially if the loan is for a large sum, such as a home purchase, not all creditors will be as eager to grant a loan.
Time to Wait
After a bankruptcy, mortgage lenders are still prepared to take a risk on you, but they need some confidence that you will be capable of keeping up with your payments. A waiting period allows you to repair your credit score and demonstrate that you can handle and keep up with mortgage payments.
Following your Chapter 7 bankruptcy, you may be required to wait for 2 to 4 years. It’s vital to remember that the waiting period begins on the date of discharge, not the date of your initial submission. If you’ve filed repeated bankruptcies or are facing foreclosure, your waiting time may be extended.
Most mortgage lenders, however, may shorten the waiting time if you can show that your bankruptcy was caused by extraordinary circumstances beyond your power and not due to financial mismanagement. A spouse’s death, a natural disaster, or a serious physical disease are all examples of this type of circumstance.
Contact our Florida Bankruptcy Attorney
Getting back on your feet after bankruptcy. Waiting for the one to four years required to apply for a loan is just one step in regaining your credibility as a borrower. If your credit score remains poor after the bankruptcy waiting period has ended, you may still have difficulty qualifying for a mortgage. If you want to refinance your mortgage after a bankruptcy, you’ll need the help of a bankruptcy attorney.