My OperaLas vegas lawyer Buying a Home - Bankruptcy
Thursday, November 4, 2010 12:56:04 AM
Read this article if you are considering bankruptcy before buying home.
If you are in a situation where you might file bankruptcy but still want to eventually buy a home, don't worry! A bankruptcy will reduce your credit score by 200+ points, but this result is not permanent.
After filing bankruptcy you will want to be diligent on achieving a perfect payment history with three or more credit references. Most of the time you will need to wait two years from the dismissal of the bankruptcy to be reviewed for a mortgage loan.
It really helps to get letters from anyone with whom you've been paying bills on time with (telephone, or other utilities and insurance providers, for example). You can never have too many good reports of your improved financial responsibility, more so after a bankruptcy.
It is a great idea to keep your current job, and ideally the same job from the time of your bankruptcy. Remember, you are trying to prove your consistency and reliability as much as possible.
As your credit lines begin to come back, be careful not to use too much of whats available. Keeping the charges you make low will be a strong signal to lenders that you mean business.
One warning I always issue to people is to make sure whatever was causing the problems which led you to consider the bankruptcy, in the first place, have been fully resolved.
Bankruptcy is a serious undertaking. You will be closing the doors on virtually any credit for a time, not to mention the mark it leaves will remain on your credit report for 10 years. Recurring financial problems become much more difficult to deal with once you've filed bankruptcy in the past.
Assuming youve made all the appropriate post-bankruptcy steps and you're ready to begin your search, keep the following tips in mind.
Be careful of sub-prime lenders that charge extremely high costs for closing costs, pre-payment and other fees. As I usually say, if it seems excessive or unfair, it usually is.
Make sure you obtain 3 or more quotes from different lenders. This helps flush out the best deal.
Do not get frustrated, get creative! If you still need extra cash for a down payment, consider borrowing it form a friend or relative. After closing, you can often apply for a second or third mortgage up to the value of the house to repay. (Make sure to discuss any creative ideas with your lender)
First-time-buyers. Often there are sate-operated first-time buyers programs which can help you get started. A quick internet search can work wonders.
Make sure you've exhausted all other options short of bankruptcy before you take this step. Having creditors harassing you can magnify problems that you might normally handle without considering a major bail-out.
In summary, review your credit report for mistakes and opportunities. Negotiating toward a clean financial history has helped many from filing for bankruptcy. Whatever your choice, make a move today " you will be so happy you did!
For a free credit consultation call 1-866-246-7311. Or for free credit repair letters or to learn how to remove bad credit from debt collectors such as Midland Credit Management.Las Vegas Lawyer: las vegas lawyers
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