Getting a new mortgage after filing bankruptcy

| Jun 23, 2017 | Chapter 13 Bankruptcy, Firm News |

Perhaps one of the biggest concerns among homeowners in Ohio who are considering bankruptcy as the solution to their debt problems is how such a decision might impact their future. Specifically, people often worry that they will not be able to buy a home or get a new home loan ever again with such a mark on their credit histories. This is not actually the case. Home ownership after bankruptcy is indeed possible.

As explained by My Horizon, a lot of what may help someone realize the dream of buying a house again after a bankruptcy may be influenced by what type of credit they have rebuilt. The odd thing with credit is that the only way to have a good credit score is to get credit and use it but that use must be judicious. That means consumers should take care to not only acquire new credit even if in the form of a secured credit card but to use it carefully and pay it off every month. Late payments should be avoided at all cost. Eventually, a credit score will increase.

Smart Asset adds that prior bankruptcy debtors will need to be prepared to wait a little while before looking for a new mortgage. The exact length of time required before someone can buy a house after filing for bankruptcy will vary in part by what type of loan they are seeking and what type of bankruptcy they filed.

The wait period does not have to be all bad as that may provide just the time needed in which to rebuilt credit so that when a mortgage application is made, things are in order.