Can I Refinance My House After Bankruptcy | Info About Car Loan Rate Refinance

Article by M Petrone

If you have recently filed for bankruptcy there is ways to get a mortgage. The best way to do this, is to make extra efforts to increase your down payment (bigger = better) and make sure you are prepared for income verification by the lender.Typically, lenders require a 24 month wait from the moment the bankruptcy was official until you will be considered for a home loan. However, when that 2 year wait is over, you most likely will be able to receive 100% financing for your mortgage. Keep in mind your credit score will still need to be decent. Keep up to date with payments, even minimum payments at all costs, especially after bankruptcy.However, if you are seeking a home loan within 24 months after bankruptcy, your credit will need to be perfect since the bankruptcy. Then, you will often still need at least a 5% down payment. The more that you have for a down payment the better chance you have of getting approved.Here are some great ways to get some down payment money to help your mortgage approval with the lender.Ask a good friend or a relative for a loan, pay it back in a few years after you have reestablished your credit and can refinance your mortgage for a better rate and walk out with cash. The lenders require that you tell them about any loans from relatives or friends to assist in the down payment. So maybe get it in a card for a holiday instead of 1 lump sum:) Mortgage lenders have strict requirements (so they say) about where the down payment money is coming from do not get caught lying/defrauding a mortgage lender.Search the internet for down payment assistance programs. Theres even government grants available to first time mortgage seekers. Google down payment assistance and you should have a good start.3. You could cash out a 401K or another investment and like in the first example, repay yourself with a 2nd or 3rd mortgage after the loan has closed.Cash out old bonds, sell some stock, cash out some of your 401k. If you keep up with your credit rating after the mortgage, you can refinance for a way better rate and put the cash back into where you got it out from. Kind of like a loan to yourself.

If you have bought your house in the last five years or so or have refinanced your loan during that time, you can be in the predicament that your house is worth less than the amount you owe the bank. House prices have fallen and they continue to do so. Now, if you want to sell your house, what can you do?

You can sell your house and pay the shortfall yourself, but how many people are in a position to do this? Is this something anyone would like to do? It is always a good idea to be open and honest about your situation. Talk to your lender about your circumstances and try to work out a way that you can keep your home. Can the lender reduce the mortgage rate or the monthly payments? Can you pay the interest only, for the time being?

The alternative that many would like to avoid is the one to foreclose. If you cannot keep up with your mortgage payments, this is exactly what is going to happen. Otherwise, you will have to file for bankruptcy and you would not be happy with that scenario.

You can opt for Deed-in-lieu of foreclosure. This means that you give your property back to the bank or mortgage lender and walk away. They might not be happy with this because they are going to lose money and so are you.

There is also the short sale, which is the alternative to the above options. There may be many reasons why you have to sell your house. It can be a divorce or marriage or a new job in another state. It can also be that you just cannot afford the monthly payments any longer. If none of the above mentioned options sound like a solution to you, you can consider a short sale.

A short sale or "upside down" means that the amount you owe the mortgage lender is more than what you will be able to sell for. To be able to do this, you will have to obtain the lender's approval first. You will also have to supply financial information to substantiate your request. Keep in mind that the lender is going to take a loss with this arrangement, but it is a better option for you than taking the foreclosure route.

If you choose the avenue of a short sale, you might qualify for a home loan again in another two years. The waiting period after a foreclosure is five years and it is seven years after a bankruptcy. So, you can see why the short sale calls for serious consideration on your part. As things stand at the moment, the deficiency amount, which is the amount the lender is going to lose in this deal, is deemed tax-free for a house owner on their primary residence.

The lender(s) is responsible for the costs of the sale. This means that they will pay the real estate commissions and any other closing costs that might be incurred. You, as the homeowner, will have no extra costs if you have a short sale on your house.
There could be financial and tax implications if you decide to go the short sell route. It will be to your advantage to find out what they are. A talk to a lawyer or tax consultant could provide you with the answers.

If you are unsure as to how to approach a short sale, contact a real estate agent with the necessary know-how and experience to guide you through the process. Not all of them will know how to go about it. The agent will have to negotiate with the lenders to get the deal through.

It is not ideal to have to sell your property, least of all when you are looking at a loss. You probably bought the property as a lifetime investment, a place where you can retire and watch your grandchildren grow up and play. Alternatively, you may have bought a home with the view of selling it for a profit later. At least with a short sell, you can walk away without owing anything and if your financial situation improves, you can always consider buying another house two years down the line.

The above article is composed and edited by Shannen D. She is associated with many finance and real estate communities as their freelance writer and adviser. In her free time she writes articles related to online estate agents, Sell your house etc.

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