Personal Finance, Business and Finance Solution

Going through a chapter 7 can seem to take forever. Before you can get back on the real estate ladder the bankruptcy must be fully discharged by the court. In addition before you apply for any new home loan ensure that you have full control of your finances and for example are not part of some enforced credit program. Even if your chapter 7 has not been finalized there are many things you can be doing in order to prepare.

One of the most important things you need to start doing straight away is to start saving for a down payment. The larger the down payment you have the easier you will find it to get a deal. If you have a down payment as large as say 15% then you should be able to get accepted for a home loan within days after bankruptcy.

Naturally you will not get the best deal by getting a mortgage straight after bankruptcy, however by having a mortgage and making your repayments you will be building your credit score back up so much so that after about 12-24 months you should be able to refinance and get a regular home loan. This is far better than waiting for 2 years, then applying for a mortgage to find that the lenders still classify you as a sub prime borrower.

You may find that the value of your home means you have enough equity so that you can refinance almost straight away after bankruptcy. If you do, take the opportunity.

Assuming you are not in this lucky position what should you do? Well the first thing to do is to start researching your options. It is crucial that you invest some time researching the market to see what kind of deals are out there. That way once you come to start applying you should already know where to look and what sort of deal is within your reach.