Most people think that if they declare bankruptcy they can never get mortgage refinancing. That is not the case, as it is possible to obtain a mortgage loan after bankruptcy.
“A lot of people do not realize that they can get mortgage refinancing after bankruptcy. In fact, there are a variety of options. One of them is using a qualified attorney who specializes in helping borrowers to file that kind of paperwork. It is a good idea to have a skilled bankruptcy lawyer on your side, as they help mediate with your creditors. The ideal attorney is up-to-date and very knowledgeable about legal finance procedures and may be able to assist you in getting a good loan,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.
It is inevitable that after declaring bankruptcy an individual’s credit rating will affect the kind of loan he or she is able to obtain. A low credit score will put an individual out of the ballpark for some kinds of loans, because creditors view the low numbers with a jaundiced eye. Mortgage refinance loans may also be available, but they may also come with sky-high interest rates, because loaning to someone who has gone bankrupt is viewed as a high-risk venture.
“For this reason, check the refinancing fees first. You may make the decision at that time to wait a few years to prove you are able to handle your debts now. Doing that will put you back in the driver’s seat and you will have a chance to apply for cheaper loans,” Ahrenholz said.
In the crush of information that those who have gone through bankruptcy face, they may not know it is a smart move to pre-qualify before going for a bankruptcy mortgage refinance loan. The long and short of it is that being pre-qualified gives the individual a solid idea of how much he or she can borrow.
“From there, it’s usually just a matter of finding mortgage lenders who offer ‘damaged credit’ programs. It’s not as hard as you may think to still find a way to re-finance your home. With good legal assistance, your bankruptcy should proceed smoothly and you will come out the other side with a new perspective on life. While facing bankruptcy is difficult, it doesn’t need to be when you have the right kind of help,” Ahrenholz said.