Schimizzi Law, LLC
Phone: 724-972-4524
Toll Free:866-475-0816
Text Message: 724-454-6718

Bankruptcy and a new mortgage

Many Pennsylvania residents who struggle with financial problems may feel hesitant about pursuing bankruptcy to help them get a fresh financial start in part because they fear that they would be unable to get a new mortgage someday. That, however, is not true. While there may be some extra steps involved, it is possible to buy a new home or refinance an existing home even with a bankruptcy on a record.

As Smart Asset explains, people who have filed for either Chapter 7 or Chapter 13 bankruptcy will not likely be able to get a new home loan immediately upon filing for or completing a bankruptcy. There are generally accepted waiting periods for this. These waiting periods vary based in part on what type of bankruptcy was filed as well as what type of home loan is being sought. For example, FHA loans may have different wait times than do loans for veterans.

Another factor that may impact how long a consumer will have to wait before getting a mortgage after a bankruptcy is whether or not a prior home was foreclosed on. Having both a foreclosure and a bankruptcy on record may extend the number of years a person should hold off seeking a new loan.

During the wait period, My Horizon Today recommends that consumers focus their energy on rebuilding good credit. This not only includes obtaining, using and paying off new credit but should also include cleaning up a credit history. Many people find that there are errors on their credit reports and working to have these eliminated is important.

 

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help You?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Keystone Commons
35 West Pittsburgh Street
Greensburg, PA 15601

Toll Free: 866-475-0816
Phone: 724-972-4524
Phone: 724-454-6718
Fax: 724-837-7868
Map & Directions

Make payment | Visa | Master Card | Discover | American Express | Law Pay practice panther image