New Mortgage after filing bankruptcy. Bankruptcy lawyers are always asked about this. If I file bankruptcy, how soon can I buy a home and get a mortgage? As the economy hit rock bottom, many people had to turn to a bankruptcy attorney for help. It was the only way to pay their debts. Bankruptcy filings hit a peak of 1.5 million in the Unites States in 2010. For many people, bankruptcy is still the only option to get a fresh start. Filing a Chapter 7 or Chapter 13 bankruptcy case can lead to a fresh start. After receiving a bankruptcy discharge, financial fortunes can improve. This leads many to want to buy a new home. For most, this requires getting a loan. So the worry is, if I file bankruptcy, am I eligible to get a home loan? Lenders have different requirements. According to Fannie Mae guidelines, debtors who filed a Chapter 13 bankruptcy must wait two years from the date of the discharge to be approved for a new loan. The Federal Housing Administration’s guidelines for loan approvals is two years from the date of a Chapter 7 bankruptcy discharge. The wait for Chapter 13 bankruptcy filers is one year from the date of discharge. Providing the individual has kept up with payments under their Chapter 13 plan and has court permission. These guidelines are not set in stone. If a person can show extenuating circumstances, the waiting period could be waved. With interest rates at historic lows, now is a great time to but a home. It is always best to consult with a bankruptcy lawyer if you have any questions regarding incurring debt after you have completed your bankruptcy. It is always best to start building your credit back up after completing a bankruptcy. This will put you in a better position when you are ready and eligible to buy. Do not let the worry of future loans stop you from filing bankruptcy. That is if you decide filing bankruptcy is the only way you can climb out of debt. An experienced bankruptcy attorney can explain life after bankruptcy. Most bankruptcy lawyers give free consultations. A few minutes of your time could ease your mind. The stress from money problems can be difficult. One quick consultation with a bankruptcy lawyer could address any questions. Ridding yourself of overwhelming debt could give your life after bankruptcy a bright future.
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