You are probably thinking how in the world can I get a
mortgage while in Bankruptcy? Well guess what you can. In
this article I will teach you what to do. Two of the most
common bankruptcies among people are Chapter 13 and Chapter
7. Here are there attributes.
Chapter 13
Chapter 13 is where you set up payments with the court to a
trustee. This typically takes place over 5 years. You will
pay back a portion of what is owed to creditors. Chapter 13
stays on your credit report for 7 yrs.
Chapter 7
Chapter 7 is where you file bankruptcy through the courts,
and dissolve all debt. This particular bankruptcy is looked
at much more harshly with creditors and stays on your
credit report for 10yrs.
Bankruptcy is usually the last resort when it comes to
getting yourself out of a swamp of credit problems. I
personally believe most people don't want to file
bankruptcy but have no choice once they do. Usually
bankruptcy is stemmed from lots of debt. There is hope
though when it comes to buying a home. I will tell you real
quick, you cannot buy a home while in a Chapter 7. Banks
will not touch you with a ten foot pole, usually for 2 to 3
years. You can buy a home while in a Chapter 13, only if
your trustee gives you permission.
Requirements to get a Mortgage while in Chapter 13
1. Must have permission from Trustee
2. Must have a lender willing to finance you FHA
3. Must have a minimum 12 month payment history with
Bankruptcy.
4. Cannot have any late payments after bankruptcy is filed
5. Cannot have any collections after bankruptcy is filed.
6. Must have 3 alternate lines of credit.
A. Examples:
a. Letter from electric company stating you have been on
time with payment for last 12 months
b. Letter from Phone Company stating you have been on time
with payments for the last 12 months
c. Letter from any utility company stating you have been on
time with your payments for the last 12 months.
If you are in a chapter 13, and you meet all these
requirements you should be able to get financed FHA. The
first thing you need to do is pull a recent copy of you
free credit report, and make sure you have not had any
collections or slow pays on your credit report during
bankruptcy.
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About the Author: Mike Clover is the owner of
http://www.my720fico.com . My720fico.com is one of the most
unique on-line resources for free credit score reports,
Internet identity theft software, secure credit cards, and
a BlOG with a wealth of personal credit information. The
information within this website is written by professionals
that know about credit, and what determines ones credit
worthiness.
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