Can I Get a Mortgage After Filing for Bankruptcy?

Things happen in life that are not subject to your control. The loss of your job, an accident, or sudden illness may have put you in a financially precarious situation. Bankruptcy was your only way out. Having to file for Chapter 7 or Chapter 13 is not as bad as it used to be. You will at some point be able to get credit in the future, and you will be able to take out a mortgage. 

Brooklyn bankruptcy attorneys have the expertise and experience to help you through your bankruptcy. If you have filed a Chapter 13, they will work with you on the re-payment schedule. If you have filed a Chapter 7, they will ensure that you are treated fairly as your assets are liquidated. The Brooklyn bankruptcy lawyers you hire will also advise you on your financial future. 

You Will Need to Wait 

It is possible to take out a mortgage after a bankruptcy, but you will need to wait. There are plenty of mortgage lenders willing to take a chance on people who have had to file for bankruptcy. But they want some assurance that you are back on your feet and that you will be able to maintain the mortgage payments. In most instances, you will have to wait from 2 to 4 years following the bankruptcy. This will give you time to rebuild your credit score and demonstrate your ability to pay your bills. 

In some instances, you will not have to wait so long. There are mortgage companies that are willing to lend money sooner if you can prove that your bankruptcy was the result of circumstances beyond your control rather than recklessness or financial mismanagement. 

Other Sources of Money 

Going to mortgage lenders who specialize in helping people who have declared bankruptcy is not your only option. The following types of loans are also available: 

1. Government-backed loans 

These loans are backed by the federal government and protect a lender if you default on payment. You must wait a period of time after the bankruptcy to file for this loan. 

2. Federal Housing Authority (FHA) loans 

These loans are for first-time homebuyers and people with poor credit history. The government does not lend the money directly but guarantees loans from private vendors. You will be required to put as little as 3.5% down on the house, and you can qualify for an FHA loan no matter your credit score. However, you will have to wait 2 years after your bankruptcy discharge to file. 

3. Veteran’s Affairs (VA) loans 

If you are a veteran, then you should consider filing for a VA loan. You can buy a house with no down payment, and there is no credit score requirement to receive the loan. You will be eligible for a VA loan 2 years after your bankruptcy. 

Plan For Life After Bankruptcy 

Bankruptcy attorneys Brooklyn can help you plan for life after bankruptcy. Even if you lost your house in the liquidation, you need not resign yourself to a life of apartments and other rentals. It is possible to take out another mortgage and purchase another house. The bankruptcy attorney Brooklyn will counsel you on how to use the law and the raft of federal programs available to you. Bankruptcy attorneys in Brooklyn are also familiar with the network of mortgage companies that help people who have been forced into liquidation because of a downturn in the economy or serious illness or injury that temporarily knocked them off their feet. Such companies assess all the circumstances that led to the bankruptcy before making a decision on whether to lend. 

A bankruptcy attorney in Brooklyn at Ursulova Law Offices can help you get your life back.