Bankruptcy is the solution of last resort when it comes to eliminating your debts, however not all debts can be eliminated, and cutting some may result in the loss of your car, your assets and even your home. If you’ve previously declared bankruptcy, it may be difficult to get another home equity loan, let alone another mortgage, but it’s not impossible.
Home Equity Loans. A home equity loan can be one of the most useful bankruptcy alternatives due to its flexibility and tax-friendly consequences. However, it is also one of the riskiest because you must put up your house as collateral. That means that the lender places a lien on your real estate, meaning the lender can foreclose on your home.
Chapter 7 bankruptcy /home equity loan Our Chapter 7 was discharged over three years ago. We kept paying the first mortgage, but not the equity line. Our equity line was with Bank W, in which they.
fha refi rates today Taking advantage of today’s low refinancing rates is only one of the many reasons to consider refinancing your mortgage with Flagstar Bank. Many savvy borrowers look to a mortgage refinance as a way to lower monthly payments, pay off debt under one loan, 1.
Your ability to discharge a home equity loan in bankruptcy depends on two critical factors: which chapter of bankruptcy you file and the home’s fair market value. If you file for Chapter 7 protection, your chances are nil if you want to keep the property.
Unsecured loans like credit cards and medical debt could be more easily discharged in bankruptcy than with a home equity loan. filing for bankruptcy will have a direct negative impact on your credit score for 7-10 years, but it also can provide a fresh start or “second chance” on your financial life.
Furthermore, a recent Harvard study indicated that seniors have been the fastest-growing group of people filing for bankruptcy, citing that as of. offering homeowners ways to access their home.
When Can I Get a Mortgage After Bankruptcy? Learn how long it takes to get an FHA, VA, USDA, or conventional mortgage loan after Chapter 7 or Chapter 13 bankruptcy.. if you’d have to reduce the amount paid to your creditors in your plan to qualify for a home loan. And if you have to present.
As long as a bankruptcy filing appears on your credit report, it will be difficult to get a reasonable interest rate on an unsecured credit card, a home mortgage or a car loan. filing for bankruptcy is a double-edged sword: It’s hard to get loans with bad credit, but you can’t demonstrate positive credit behavior until you get a loan.