|
What To Do If You
Have A Bankruptcy
If you wonder what to do what to do if you have a bankruptcy in
your credit report. It is usually a devastating blow to your credit
and FICO score, but it doesn’t mean you have to wait 10 years
so you can qualify for a mortgage. Many consumers who have
filed for bankruptcy have been able to obtain a home loan,
although it is often at a higher rate than someone qualifying
for a prime loan.
The mortgage lenders are more
interested in your recovery — You have to provide
information on what you’ve done since your
filing. Recuperating won’t happen overnight, but some tips and
things to keep in mind when you have
tarnished credit past:
Explain the Situation. No
mortgage lender is going to ignore the fact that you’ve filed
bankruptcy and he or she will likely want to know the cause of
the filing. Your lender will be particularly interested in
whether the same situation could happen again. Your chances of
being qualified are much better if your bankruptcy was caused by
a single event such as a loss of employment or a death in the
family, than if it was the result of “just spending too much.”
If the bankruptcy resulted from a single event, it is important
to show your lender paperwork describing the incident, such as
the layoff notice or death certificate. You may also want to
bring in court documents to indicate when the bankruptcy was
filed.
Dispute the errors in your report.
There’s no need to add to your troubled credit history with
errors on your credit report. Get a copy of your credit report
from each of the three major credit reporting agencies: Equifax,
http://www.equifax.com; Experian, http://www.experian.com; and
TransUnion, http://www.tuc.com. If you encounter any errors,
inform the CRA in writing what information you believe to be
inaccurate and request deletion or correction.
|
Demonstrate you have good money habits now.
Many people who file bankruptcy swear off credit altogether,
however, it is important to re-establish your credit rating. Get
a secured credit card or take on some sort of loan — furniture,
a car or a major appliance —to demonstrate that you are able to
make timely payments. Make sure you are making other payments
(utility bills, cell phone, etc.) on time as well. You won't
turn things around in a year but your credit score will improve
over time.
Save your money.
Lenders may be more willing to loan you money if you’ve saved up
a considerable amount of money for a down payment.
Live within your means.
Even subprime lenders won’t risk loaning you money for an
opulent oceanfront mansion. Think small when the time comes to
look for a home. Smaller homes often mean smaller mortgages.
For further information, pleas
contact our office at 813-655-HOME.
Social Bookmarking
|
