Title:
Bankruptcy And
Bad Credit Issues No Longer Means No Mortgage
Word Count:
414
Summary:
Just because you
have been bankrupted doesn't mean it's impossible to become a home owner again
soon.
This articles blows away the myth that you will have to wait 10 years to get a
mortgage if you have been personally bankrupted.
Keywords:
bad credit
mortgage, bad credit, mortgage, home loan, bankruptcy, home ownership
Article Body:
In the past,
traditional mortgage lenders have automatically rejected people who had
declared personal bankruptcy. Many
potential home-buyers felt they must wait at least seven to 10 years after a
bankruptcy to be eligible to become homeowners. This is a common misconception
for many who believe their chance of home ownership is a long way away.
While some people declaring bankruptcy have had trouble managing their money, a
large number of those declaring have simply experienced unfortunate events.
Australians are filing bankruptcy at record-high levels over the last five
years. The rise in petrol price and the recent increase in interest rates won't
help either.
There are some ominous signs out there...
Though a bankruptcy is certainly a blemish on a credit report, it does not
necessarily disqualify a borrower. Recognising that sometimes bad things happen
to good people, some select loan officers are becoming more willing to take a
calculated risk.
Some lenders use a securing system to determine whether potential buyers are a
worthwhile risk. Unfortunately, bankruptcy gives a low rating. However, select
lenders are beginning to look beyond the rating and look at the individuals in
need.
Instead of waiting two or four years after being discharged from bankruptcy,
some mortgage professionals are willing to give a home loan much sooner. Those
who have declared bankruptcy liquidation may be eligible for a loan one year
after discharge, and those who are in a Part IX
debt agreement could also be able to get a mortgage.
Another common misconception is that a previous bankruptcy on your credit
report will require you to have a large down payment and pay extremely high
interest rates. There are currently programs available with as little as 5
percent down with very attractive rates.
Some lenders are even prequalifying buyers for a loan, saving time and making
the home-buying experience easier and more efficient. When a buyer prequalifies
they will have the advantage of greater negotiating power.
No matter what the situation, select mortgage professionals have a program that
will work for the buyer with a bankruptcy history. If a buyer cannot get
approved, there are customized plans that can re-establish credit to help the
buyer become mortgage-ready, ensuring home-ownership in the future.
Because of new options, bankruptcy no longer needs to stand in the way of
getting a home loan. With the help of more creative lenders, those who have
experienced financial difficulty will have an easier time getting a
mortgage.
To your ongoing financial success,
Julian Thornton