Monthly Archives: November 2018

Bankruptcy And Bad Credit Issues No Longer Means No Mortgage

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Just because you have been bankrupted doesn’t mean it’s impossible to become a home owner again soon. This articles blows away the myth that you will have to wait 10 years to get a mortgage if you have been personally bankrupted.

In the past, traditional mortgage lenders have automatically rejected people who had declared personal bankruptcy.  Many potential home-buyers felt they must wait at least seven to 10 years after a bankruptcy to be eligible to become homeowners. This is a common misconception for many who believe their chance of home ownership is a long way away.

While some people declaring bankruptcy have had trouble managing their money, a large number of those declaring have simply experienced unfortunate events. Americans are filing bankruptcy at record-high levels over the last 10 years.

There are some ominous signs out there…

Though a bankruptcy is certainly a blemish on a credit report, it does not necessarily disqualify a borrower. Recognizing that sometimes bad things happen to good people, some select loan officers are becoming more willing to take a calculated risk.

Some lenders use a securing system to determine whether potential buyers are a worthwhile risk. Unfortunately, bankruptcy gives a low rating. However, select lenders are beginning to look beyond the rating and look at the individuals in need.

Instead of waiting two or four years after being discharged from bankruptcy, some mortgage professionals are willing to give a home loan much sooner. Those who have declared bankruptcy liquidation may be eligible for a loan one year after discharge.

Another common misconception is that a previous bankruptcy on your credit report will require you to have a large down payment and pay extremely high interest rates. There are currently programs available with as little as 5 percent down with very attractive rates.

Some lenders are even pre-qualifying buyers for a loan, saving time and making the home-buying experience easier and more efficient. When a buyer pre-qualifies they will have the advantage of greater negotiating power.

No matter what the situation, select mortgage professionals have a program that will work for the buyer with a bankruptcy history. If a buyer cannot get approved, there are customized plans that can re-establish credit to help the buyer become mortgage-ready, ensuring home-ownership in the future.

Because of new options, bankruptcy no longer needs to stand in the way of getting a home loan. With the help of more creative lenders, those who have experienced financial difficulty will have an easier time getting a mortgage.

For a free consultation call Firebaugh and Andrews. 734-722-2999

How a Bankruptcy Attorney Can Help You

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Corporations and other businesses are required to declare bankruptcy through an attorney. However, individuals are allowed to represent themselves in bankruptcy proceedings. You may be tempted to declare bankruptcy without a lawyer’s assistance. The process may appear simple. You may wish to avoid involving others in a situation that is already stressful. And obviously, money can be tight during this process. However, there are excellent reasons to ask for an attorney’s advice and assistance during any bankruptcy.
A bankruptcy proceeding can be an extremely stressful situation. There is no reason to go through that stress without getting the most benefit possible out of it. An attorney can help you ensure that your bankruptcy goes smoothly and save you money—as well as stress—in the long run. Here are some things a bankruptcy attorney can offer:
Information. Bankruptcy law can be complex. A bankruptcy can take several months to complete. This can add stress to what is already a bad situation. An attorney who practices in bankruptcy law can help you to understand this process. Your attorney can offer you strategies and alternatives that you might not have known about. Having this information can be vital to planning your bankruptcy. An attorney can also give you valuable advice during the process of a bankruptcy.
Expertise. Bankruptcies require a lot of paperwork. Different bankruptcy courts have different rules. You must provide the bankruptcy court with information on all of your debts, property, and financial information. Bankruptcies involve communication with the court, creditors, and trustees. You must also follow the rules specific to the court in your jurisdiction.
All paperwork for a bankruptcy must be filled out correctly, or you can risk not having your debts cancelled. Bankruptcy documents are randomly audited to prevent fraud. If you make a mistake in providing information, you can face prosecution for fraud. Obviously, the best way to protect yourself is to Call Firebaugh and Andrews at 734-722-2999  who has experience in these issues.
To get the most out of your bankruptcy proceeding and protect yourself from mistakes, it is vital to get an attorney’s assistance. An attorney who practices in bankruptcy law will understand how to submit information to the courts and to your creditors, to ensure that your debts will be discharged.
 
Protection. Even after you retain a lawyer, your creditors can still contact you. However, Firebaugh & Andrews can help to stop harassing phone calls. Having someone else take over the hassle of dealing with your creditors can save you time and energy—and make sure that you gain peace of mind during as well as after the bankruptcy process. Your attorney can also help you make sure that debts discharged during your bankruptcy do not show up on credit reports in the future.
Bankruptcy can be a painful process, but there are ways to reduce the stress involved.
Firebaugh & Andrews can help, call today for your free consultation. 734-722-2999