100 Mortgages

Your chances of getting a mortgage after bankruptcy are mighty good in the year 2010 and beyond. The reason for this is simple, sweeping bankruptcy as well as mortgage changes have made it far simpler to receive a mortgage these days. It is very possible to get a mortgage after bankruptcy as there are lending institutions that specialize in providing these types of mortgages for individuals who have suffered through a bankruptcy. These lending institutions are well-versed in the industry of offering mortgages and finding the money to pay for that 3/2 on Main Drive.

The best way to see if you qualify for a mortgage after bankruptcy is wait 24 months before you do anything. This is the time in which the individual bankruptcy enrollee can really get their life together and create a budget and stick to it. As I have deep experience with bankruptcies by having previously filed. After successfully, saving my home and most of my assets to a Chapter 7, I am speaking from experience.

The chances of getting a mortgage post-bankruptcy have never been better as the Obama Debt Relief Program has opened many doors for the ‘American Dream’. It is in the waiting period of those 24 months where you can apply for a mortgage and show the lenders just how honest and forthright you have been in paying back debts and not creating new and bad credit files.

This is highly important to demonstrate to the lending institutions and something that you will want to really concentrate on from here on out. For those that are sick and tired of watching the hard-earned rental money fly out the window, it is time to get serious about looking for a fine mortgage. There are a few ways that you can improve your chances on landing a mortgage after bankruptcy if you follow these easy instructions. Firstly, you will need to go through the ‘waiting period.” Please make great financial choices during this time and only pay back passed-credit and by all means do not add on any more new-credit files, during this crucial time.

Once you get past that 24 month long waiting period, you will see blue skies opened up and a whole new world of American homeownership! Do not be dismayed by fear. You can get a home with a bankruptcy since the very institution that is bankruptcy desires to reform and reward that reform with a home. The nay-sayers will tell you that it will be nearly-impossible to find financing for the home if you can even find a mortgage broker to accept you at all! The truth is that in order to receive a post-bankruptcy mortgage you may have to pay a higher percentage for a down-payment.

Of course if you want to pay up to 30% there will be a line of lenders begging to take the down -payment money, greedily. Mortgage loan brokers work for the banks and need to move property and in a big way each and every month. It is in these little caveats of opportunity where you can find a dream home even after you have been dismissed on a discharge for bankruptcy and are sitting on 00 worth of disposal monthly income that is burning a hole in the pocket.

If you find that your mortgage payments become more and more difficult to make each month, you may want to consider loan modification. Loan modification allows borrowers to have a more manageable, lower monthly mortgage payment by receiving a lower interest rate and/or extended term. Mortgage modification can help relieve the stress and burden that many feel when trapped under an elevated mortgage payment.

How is Loan Modification Different than Mortgage Refinancing?

Both loan modification and refinancing work to make monthly mortgage payments less for borrowers, thereby helping homeowners avoid foreclosure and remain in their homes. With refinancing, though, borrowers receive a brand new loan. Through mortgage modification, lenders simply modify the homeowner’s existing mortgage to make it temporarily more affordable.

Who Seeks Loan Modification?

If you are eligible for refinancing, many lenders would suggest that you go that route. Refinancing is a more permanent solution to attaining a lower monthly mortgage payment. Modification is usually a temporary solution; after five years, your lowered interest rate will slowly increase to a set maximum rate. Therefore, lenders recommend loan modification to homeowners who currently have financial strain and may have already missed one or two monthly mortgage payments.

What are the Eligibility Requirements?

Banks want to help homeowners avoid foreclosure whenever possible, because a loan in default and/or the foreclosure process cost banks a lot of money. It is in a bank’s best interest to help a homeowner modify his or her loan if they conclude that financial assistance is necessary. Though mortgage modification eligibility requirements vary depending on the lender, they often include the following requirements:

• the borrower has a documented change in finances (e.g. job loss) and/or proven financial difficulties;
• the property in question is the borrower’s primary residence;
• the homeowner has not filed for bankruptcy;
• the borrower has defaulted on mortgage payments and is ~90 days late.

Unfortunately, some homeowners take advantage of the mortgage modification system and apply for a modification when it’s not a financial necessity. Therefore, most lenders require that you show documented proof of financial difficulty so they know you’re not purposely defaulting on your mortgage in order to receive a modified rate or term.

Who Grants a Loan Modification?

The first step in getting a modification is to figure out who currently holds your mortgage. You can find this information on your mortgage statement. Simply look for the name and address to whom you send your monthly payment. This is the lender you will contact regarding your loan modification application.

What Documents Must I Show?

Most lenders require loan modification applicants to provide the following documentation:

• income verification (they want to make sure you’ll be able to make the modified monthly payment);
• a letter explaining your current financial hardship;
• a comprehensive monthly budget.

There are several modification programs available for homeowners, including programs from the US Treasury, the Federal Housing Finance Agency, and most major banks.