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  • What to do If You Want to Get a Mortgage Loan After Bankruptcy?

    What to do If You Want to Get a Mortgage Loan After Bankruptcy?

    Call: 888-297-6203

    Though it is designed to relieve you of your debt issues, bankruptcy can cause huge problems for you too; especially when it comes to getting loans. When any individual files for bankruptcy, it becomes public record and appears on their credit report. This makes prospective lenders aware of the risk associated with lending money to you. Hence, you find very few creditors willing to give you the loan at rates and conditions which are acceptable to you. In case you wish to get a mortgage loan after going through Chapter 7 bankruptcy, you will find that things are not exactly favorable for you.

    According to Los Angeles based bankruptcy law firm Recovery Law Group lawyers, getting a loan at favorable terms is a bit difficult, especially after a bankruptcy. Despite getting a discharge for your loans, your credit report is not wiped clean. Since Chapter 7 bankruptcy involves no repayment of loans, this remains on your credit report for a duration of 10 years. Thus, if you wish to get credit at reasonable rates and fees, you need to make efforts to rebuild your credit. This takes time and effort on your part but with good payment history, you can qualify for mortgage loan too!

    Steps for rebuilding credit after bankruptcy

    People who file for bankruptcy have the option of choosing from Chapter 7 or Chapter 13 bankruptcy. They can also decide to reaffirm a loan when they choose to keep a car or home or credit accounts which they could have surrendered. Making continuous and timely payments on such accounts, after bankruptcy, can be a great way to rebuild your credit history. Other steps include:

    • Applying for secured credit cards with the bank. This option is a great choice for people who have no positive accounts open which can help re-establish credit. Using this type of card for making payments on essential items like utilities etc. and living within means can slowly improve your credit rating.
    • You could also ask a family member or friend to co-sign a loan or open a joint an account with you.

    With time and steady work, your credit score improves, allowing lenders to put faith in you. Sometimes, you might even qualify to get a mortgage loan at normal interest rate before the bankruptcy is removed from your credit history.

    When can you apply for a mortgage loan?

    An individual fresh out of bankruptcy discharge, applying for a mortgage loan will not get any offers, even at the high interest rate. However, with time, things can be better, especially if you have worked hard to improve your credit rating. A Chapter 7 bankruptcy remains on your credit history for 10 years while Chapter 13 bankruptcy Los Angeles for 7 years. If within that time frame, you have developed a positive credit and established yourself financially, then you can opt for a mortgage loan. Pre-qualifying for a mortgage is one thing and getting it at a reasonable rate is another. If you get a loan at favorable terms, you are in luck; in case you don’t, you can always wait for your bankruptcy to be removed from the credit report before reapplying.

    Bankruptcy does not need to be a huge problem, especially with experienced lawyers by your side. If you wish to seek expert opinion on your case, you can call 888-297-6023 to schedule an appointment.


      *Are you more than 60 days past due on your mortgage?

      *Do you own a home?

      Are you currently working?

      By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

    • Can Bankruptcy Affect Your Chance of Getting Mortgage?

      Can Bankruptcy Affect Your Chance of Getting Mortgage?

      Call: 888-297-6203

      Overwhelming debts require you to take some action if you wish to avoid repossession, foreclosure or lawsuit. Bankruptcy can be a way out, but you pay the price for it. You end up hurting your credit rating for as long as ten years in case of a Chapter 7 bankruptcy and seven years in case of Chapter 13 bankruptcy. Getting credit after bankruptcy can be extremely difficult. Thus, if you wish to get a mortgage, bankruptcy can be bad!

      According to Dallas based bankruptcy law firm Recovery Law Group lawyers, bankruptcy lowers your credit score considerably, making it difficult for people to get mortgage loans, especially post-bankruptcy. After some time, the negative effects of bankruptcy lessen, and lenders might consider your credit building efforts before agreeing to your mortgage. It is important to ensure that your credit-building efforts are reported to the credit bureaus so that your credit report is updated. Any incorrect or outdated information displayed on the credit history can hamper your chances of getting any kind of credit, including the mortgage.

      Effect of different bankruptcy types on mortgage loans

      The type of bankruptcy and discharge affect the establishment of a new line of credit. Here’s a look at various bankruptcy types:

      • Chapter 7

      In this liquidation bankruptcy, the non-exempt property is sold off to pay your unsecured debts like credit card debt, etc. This bankruptcy stays on credit report for 10 years. After waiting some time has passed since bankruptcy discharge and with a large down payment, you might get a mortgage loan.

      • Chapter 11

      Usually meant for businesses, it can also be used by individuals. People who have more money to qualify for Chapter 7 and more debt than allowed in Chapter 13 can choose this option. The chapter is complex and expensive. After some time, post-bankruptcy discharge, you can qualify for a mortgage.

      • Chapter 13

      Debtor repays some portion of the debt through a court-approved repayment plan over 3-5 years. Any remaining unsecured debt is discharged. The bankruptcy remains on credit report for 7 years. People who wish to take mortgage after this should consult their bankruptcy trustee.

      Mortgage loan varieties

      Different types of mortgage loans are available after bankruptcy, each with a unique requirement.

      • Federal Housing Administration (FHA) Loans

      Managed by the federal government, they require very low down-payment. However, you must pay for mortgage insurance which increases the monthly payments. There is a waiting period associated with different bankruptcy chapters. For Chapter 7, two years from discharge date, for Chapter 13, one year from discharge date while no waiting period for Chapter 11 bankruptcy.

      • USDA Loans

      U.S. Department of Agriculture loans are for rural borrowers. People who aren’t eligible for conventional loans, with modest income can opt for this loan for a house in a rural area. no-down-payment and low-interest rates are a great reason to choose it. you need to wait three years from discharge date in Chapter 7 bankruptcy, one year from discharge date for Chapter 13, and no waiting period for Chapter 11 bankruptcy.

      • VA Loans

      This one is for veterans and personnel currently serving in the military. There is no down-payment in the Department of Veteran Affairs loan. They do not charge private mortgage insurance and offer loan at low-interest rate too, however, a funding fee (percent of home price) is required. The waiting period in case of Chapter 7 is two years from discharge date; one year from discharge date for Chapter 13, while no waiting period for Chapter 11 bankruptcy.

      • Conventional Loans

      These loans are not guaranteed by any government agency; hence the norms are stricter than the others. You require a good credit score, should put 20% of house’s cost as down-payment and additional private mortgage insurance. Even the waiting requirements are longer. For Chapter 7 and Chapter 11, it is four years from the discharge date; while it is 2 years from discharge date or 4 years from dismissal date for Chapter 13.

      The best way to get approval for a mortgage after bankruptcy is by focusing on rebuilding credit. The basic steps involved are creating a budget and avoiding spending more than your limit; paying your bills on time to avoid getting into debt and getting a secured credit card which reports your payments to the credit bureaus. Once you get your credit rating in order, getting mortgage won’t be tough. bankruptcy might prove to be a hurdle in your search for the perfect home, but with experienced lawyers by your side, things are smooth. To consult with qualified bankruptcy lawyers, you can call 888-297-6023.


        *Are you more than 60 days past due on your mortgage?

        *Do you own a home?

        Are you currently working?

        By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

      • What are the Homestead Exemptions in Your State?

        What are the Homestead Exemptions in Your State?

        People under huge debts are often unaware of whether they can protect their house or any other asset when they file for bankruptcy. Most states allow Chapter 7 bankruptcy filers to protect some or all equity in their home. This is termed as a homestead exemption. This exemption is also available in the case of Chapter 13 too. As per Los Angeles based bankruptcy law firm Recovery Law Group if you are able to get all or most of your home equity exempted, this lowers the minimum amount you need to pay your unsecured creditors. This makes your repayment plan considerably affordable. However, the homestead exemptions vary in each state. Few examples include:

        • Some states allow exemptions of all home equity, irrespective of the size of the home; while others protect only a small amount of equity.
        • Few states allow married couples (who are filing for bankruptcy jointly) to double the homestead exemptions.
        • Some states require debtors to file homestead declaration if they wish to take advantage of homestead exemptions in bankruptcy.
        • Most states allow you to use the state homestead exemption, while a few allow you the choice between federal and state homestead exemption.

        If you wish to know more about the homestead exemption in your state, it is important to consult an experienced bankruptcy attorney. Call 888-297-6023 to discuss your case and get to know what type of property and to which amount you can have exempted using homestead exemption.


          *Are you more than 60 days past due on your mortgage?

          *Do you own a home?

          Are you currently working?

          By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

           

        • Motor vehicle exemption act and bankruptcy

          Motor vehicle exemption act and bankruptcy

          Cars, trucks, automobiles, etc., attract a lot of tension during bankruptcy. Travelling can be an expensive and painful affair without a car in most cities in the United States. No individual wants to let go of his/her car for whatever reason there might be. Bankruptcy can be one of the situations that would require a compromise as an automobile loan is considered as a secured loan and is released in very rare circumstances. It is much easier to protect your automobile assets if you are filing for bankruptcy via Chapter 13 versus Chapter 7. The key distinction between Chapter 7 and Chapter 13 is the provision they allow for in order to settle the debts. Chapter 7 liquidates all your non-exempt assets in order to payoff secured and other priority debts with its proceeds. Your automobile might well fall under non-exempt asset. To know more about exempt and non-exempt assets, log on to Recovery Law Group.

          On the other hand, Chapter 13 emphasizes on creating a future repayment plan which means your current assets are not under any kind of danger. This plan, however, lasts for 36-60 months and a debtor ends up clearing most of his/her debt with the disposable income realized/calculated by the bankruptcy court.

          How do you protect your vehicle when applying for bankruptcy under Chapter 7?

          Under normal circumstances, the vehicle is part of a secured loan and has to be prioritized across other loans during liquidation. Also, cars, vans, trucks, and motorcycles do not form a part of exempt assets hence, the bankruptcy trustee has full authority to liquidate the asset and pay off the debts. The motor vehicle exemptions act can help protect your vehicle in these circumstances. If the entire equity of your vehicle has been covered under the car exemption, the bankruptcy trustee might not be able to liquidate your car. If the car equity is partially covered under car exemption, the bankruptcy trustee can still be able to consider it as a non-exempt asset for liquidation.

          Apart from being a game changer in the Chapter 7 bankruptcy California code, the motor vehicle exemptions have a significant role to play in Chapter 13 code also. If your vehicle is not protected under the exemption, it will add up to the tally of nonexempt assets, which ultimately decides the amount due to unsecured creditors. This means you will end up paying out more unsecured debt if your tally of nonexempt assets is higher. Getting your vehicle covered with motor vehicle exemption act can be a good move considering these aspects.

          Federal and State laws to be used for safeguarding your vehicle

          There are different circumstances, situations when Federal law is beneficial and can prevail over state laws. Historically, people filing for bankruptcy without an attorney or qualified professional help have failed to retain their cars, trucks, vans and other vehicles. The bankruptcy trustee isn’t the most lenient person when it comes to the nonexempt assets. Sometimes, it can just be beneficial to let go of your car and sometimes, there are ways to protect your car by making different arrangements before filing bankruptcy and after. Every situation case is different and needs a thorough/professional analysis to determine a beneficial situation for the bankruptcy filer. Seek the best professional help right on your phone at +1 888-297-6203.


            *Are you more than 60 days past due on your mortgage?

            *Do you own a home?

            Are you currently working?

            By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

          • Protect Your Assets through Bankruptcy Exemptions in California

            Protect Your Assets through Bankruptcy Exemptions in California

            Non-payment of bills, especially those of credit cards, etc. can result in severe consequences ranging from threatening phone calls, letters to wage garnishments to legal actions. If you wish to protect your assets from going under the hammer, you need to consult bankruptcy lawyers to get you out of this mess. Unlike the myths associated with it, bankruptcy actually offers you a chance to reclaim your life while getting rid of the financial burden of debts.

            According to Los Angeles based law firm Recovery Law Group your individual circumstances determine which chapter of bankruptcy to choose. You can opt to get the debts discharged via Chapter 7 bankruptcy or get them reorganized through Chapter 11 or Chapter 13 repayment plan can work best for you. It is important to note that you might have to part away with some property, which may be taken and sold off to pay the creditors. However, Bankruptcy Code exemptions allow debtors to keep some or all of their assets, depending on the situation. These exemptions vary from one state to another. In the state of California, two options are available to debtors:

            California Bankruptcy Exemption Option 1

            This option is also known as the “wild card” exemption as it has a list of miscellaneous personal property which can be exempted. This option is popular amongst debtors who don’t own a home or possess any equity which requires an exemption. The exemptions in this section include:

            • Life insurance up to $11,800
            • Equity up to $22,075
            • Public benefits like Social Security, unemployment, disability, etc.
            • One motor vehicle up to $3,525
            • Miscellaneous personal property up to $22,075 (in lieu of equity exemption)

            California Bankruptcy Exemption Option 2

            This option is also known as “Homestead” exemption and is generally chosen by people who wish to retain equity on their houses. Exemptions included in this section are:

            • Motor vehicle up to $2,725
            • Jewelry up to $7,175
            • Equity up to $75,000 for a single person; up to $100,000 for a married couple and up to $175,000 for special circumstances.
            • Personal property used professionally or for a business up to $7,175

            Often people can be confused regarding which exemption to choose. Thus retaining a bankruptcy attorney can help you with not just selecting the appropriate bankruptcy chapter but also choosing the most appropriate exemption. With a bankruptcy lawyer by your side who is well versed with the system and the law, you can overcome the dire financial situation.


              *Are you more than 60 days past due on your mortgage?

              *Do you own a home?

              Are you currently working?

              By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

            • Should You Consult Wellington Property Management if Your Tenant Has Not Paid the Rent?

              Should You Consult Wellington Property Management if Your Tenant Has Not Paid the Rent?

              People often wonder whether they should trust a complete stranger like property manager or real estate agent to find the best tenant for your property; after all it isn’t their property to begin with. Well, you couldn’t be more wrong! Frankly speaking, there is a difference between the way amateurs and professionals work. No matter how passionate you are about your property or how driven you are to find the “best” for you, you simply cannot compare with the professionals. It is their bread and butter; the thing that provides them means to support their family. Nobody could do a better job than them, because they are professionally trained for it. Can you: (more…)

            • Federal Bankruptcy Exemptions Details

              Federal Bankruptcy Exemptions Details

              It is not necessary that you lose all your property when you file for bankruptcy. While filing for bankruptcy, it is therefore important that you are aware of the exemptions allowed by the state as well as federal government under various chapters. This is important to salvage as much of your assets as you can. You should know the details to choose the best exemption to save your property. Some states offer you a choice between state and federal bankruptcy exemption, however Sacramento requires you to choose the state exemption only. In case you reside in any other state, you can use the federal bankruptcy exemptions to protect your property. It is important to know that federal bankruptcy exemption amounts vary every 3 years.
              (more…)

            • What is Homestead Exemption Bankruptcy?

              What is Homestead Exemption Bankruptcy?

              Filing for bankruptcy is traumatic and shameful for many people. However, it doesn’t mean that you lose all your belongings when you file for it. Homestead exemption can help protect your home from going under the hammer, if it has more value than what you owe to the debt lender. If you file for bankruptcy under chapter 7, the bankruptcy trustee won’t sell your home if homestead exemption covers entire equity. In case you file under chapter 13, you get to keep your home but have to pay your creditors, as per your repayment plan, an amount equalling the non-exempt equity (the portion which isn’t covered by exemption) (more…)