Articles About Finance And Refinancing

Refinancing Your Home Mortgage Following Bankruptcy

Bankruptcy is the last step for most people who are undergoing tough financial times. Many people fear that by declaring bankruptcy they will ruin their credit for the rest of their lives, but they find that they are able to begin rebuilding credit immediately after the bankruptcy becomes final.

Get Your Debt under Control

Bankruptcy offers you the opportunity for a fresh slate with your finances. Your old debt will be wiped clean; however, any years of established credit are gone as well. Bankruptcy can be a real stress relief if you are in a desperate situation, but it is important to realize what has brought you to that point. If you declare bankruptcy and then continue without changing your spending habits, you are destined to end up in a similar situation again. The best way to use bankruptcy is as a learning tool. Know where you lost control of your spending, and be ready to move on from there.

Lower Your Expenses

One of the best ways to lower your expenses is to refinance your home mortgage. You may think that finding a lender to refinance your home mortgage following bankruptcy will be nearly impossible, but that is not so. Depending on your situation you may be able to walk into a bank the day after your debts are discharged by the bankruptcy court and refinance your home mortgage. If you have a good deal of equity in your home, you will find it much easier to refinance following a bankruptcy.

Even if you do not have a good deal of equity, you should be able to refinance your home mortgage within six months to one year from the final date of your bankruptcy. While you are waiting to refinance your home there are several steps that you can take to make yourself more attractive to lenders. Pay all of your bills on time. This includes your current mortgage as well as any utility, student loan, or other bills that you have following the bankruptcy. Do not attempt to open other lines of credit, such as new credit cards or lines of credit at stores. While credit is important, if your number one goal is to refinance your mortgage after a bankruptcy, you do not want to appear to the bank that you are in danger of falling into the same credit trap that you found yourself in prior to your initial bankruptcy.

Why Refinance Your Home Mortgage After a Bankruptcy?

What are the benefits of refinancing your home mortgage after a bankruptcy? There are many benefits to this actually. By refinancing your mortgage you can lower your monthly payments in a variety of ways. You can extend the length of the loan or refinance at a lower interest rate, both of which will lower your monthly payment. While you will be considered a higher risk loan, and will not receive the lowest interest rate available, it is still possible that your interest rate may be lower than when you initially closed on your mortgage.

Another reason to consider refinancing your home mortgage after a bankruptcy is that this will automatically start you on the path to repairing your credit. The refinance will show up as a new loan. The older loan, which due to the financial problems that brought about your bankruptcy may have had late payments or missed payments, is closed. The new loan will show no late payments or penalties.

Where to Refinance

Too often, people feel that the black mark left by bankruptcy is an obstacle that they cannot overcome. Rather than shopping for a mortgage, they go directly to a sub prime lender, or worse, a lender who involves themselves in predatory loan practices. While sub prime lenders do have their place, they should not be your first choice. Lenders who involve themselves in predatory practices, such as excessively high interest rates, or interest compounded on an irregular schedule should be avoided at all costs. They will not help you.

Sub prime lenders are not likely to provide you with as low of an interest rate as you can receive from a traditional lending institution. Following a bankruptcy, your first stop in refinancing your home should be the lender that holds your mortgage currently. Not only do they know your payment history, and the home, they may also save you some money in closing costs by keeping the loan "in house". If they are not willing to refinance your mortgage, ask them what you should do to make yourself more attractive. If they recommend that you come back after three to six months, which is probably the best advice. If they are not interested in refinancing your mortgage, don't let it discourage you, shop mortgages at other traditional lenders.

Craig Elliott is a freelance writer who writes about topics pertaining to the mortgage industry such as Mortgage Company | Home Mortgage Lender

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

MORE ARTICLES:

Bad Credit Loan Mortgage Rate And The Good Lender
"Blessed are the young," says Herbert Hoover, "for they shall inherit the national debt." Debt, in whatever language or guise, is bad. But what if you've incurred debts and find it hard to dig yourself out of them? Does this mean you are forever disqualified from owning a home? Some would say yes. Bad credit loan mortgage rates show otherwise.

Refinancing Home Mortgage - Top 4 Reasons
There are many good benefits to refinancing a home mortgage. . For example, you can:

Home Mortgage And Our Age
Home mortgage refers to the document borrower signs that gives the lender a right to take possession of the property if the borrower fails to pay off the loan.

Credit Card Bill Consolidations
Using credit cards gives a lot of advantages as even without cash on your wallet, you can shop and dine anytime you want. The convenience of this facility however is only achieved if you use it with care. Excessive and careless use of credit cards without thinking if you could be able to pay for the dues in time is the easiest way to get you buried deeply in debts. If this has happened with you, you may be considering credit card bill consolidations as your best option to fix the problem

Know Your Credit Card Rights
When you apply for a credit card, the application that you sign is also a legally binding contract laying out all the termsbetween you and the bank, such as the interest rate and how its calculated, the grace period, whether there's an annual fee, etc.While you have to agree to the terms and sign if you want the credit card and while the lender will certainly hold you to the terms, the lender doesn't feel similarly committed.

Learn How A Personal Debt Consolidation Loan Can Do For Your Financial Situation
It's all too much. You're so deep in debt you don't know what to do about it. Have you considered a personal debt consolidation loan? No matter how bad things seem, as long as you have a job, you can consolidate your debts and reduce your monthly expenses. If you are trying to juggle a number of credit card payments every month plus other personal or consumer debt, you'll certainly understand how stressful a large debt burden can be. A personal debt consolidation loan could provide you with a reasonable solution to a whole lot of trouble.

Refinance Car Loan - Getting A Low Rate Refi Quote
Refinancing an automobile loan is a great way to lower monthly payments and obtain a better rate on a car loan. Unfortunately, this area is rarely tapped into. For the most part, consumers are satisfied with the rate and terms obtained on their auto loan. However, if you had bad credit or a recent bankruptcy at the time of purchase, a refinancing may serve to your advantage.

Use A Second Mortgage To Consolidate All Your Debt
Most of us are struggling with the debt that comes from various sources and each one of these various sources comes with its own interest rate and associated fees added to it and this is adding to our overall debt load.If you are a homeowner and you are feeling trapped under a mountain of debt, you do have an advantage when you try to obtain a debt consolidation loan.The most popular debt consolidation method which you as a homeowner can use is to apply for a second mortgage on the house that you own.

Compare Credit Card Offers and Reward Yourself
Here's a simple system on how to pay zero interest and get tons of free stuff. Almost everyone uses credit cards.

California Refinance - Refinancing in California
The real estate market in California is booming. Home values continue to appreciate almost on a daily basis.

Insurance and Mortgage Agents do The Math on The Value of Referrals
ReferNow -- an inexpensive online rewards program that help agents improve CLV

Getting a New Cash Back Credit Card
These days getting a new credit card is a really simple thing. You may have noticed the endless ads for credit cards on every TV station and in your weekly mail - credit cards want you even more than you want them! The question is more one of whose offer is worth your accepting than it is who will let you have one of their cards. There are all kinds of offers from low interest credit card offers to credit card offers with all sorts of precious metals associated with them; there are Gold cards, Platinum cards, Blue Chip cards, even cash back credit cards are available.

Why You Should Reject Most Credit Card Offers
A lot of credit card companies want you to think that their offer is a good one - without really offering you good features. For instance, this morning, a credit card offer came in the mail. After looking it over, it was rejected - because it lacked the "right features." It would have been unwise to sign up for that card. If you are thinking about getting a credit card - or maybe another one, there are some reasons why you may not want to fill out the next application that comes to you in the mail. Here are some things you need to look for to see if it really is such a good deal.

How To Use A Remortgage Loan To Your Benefit
A remortgage loan is a loan that a home owner gets to pay off their current mortgage. Home owners get remortgage loans to help them reduce their interest rates and save money.