Bankruptcy Mortgage Refinancing Help

Bankruptcy Mortgage Refinancing Help

Bankruptcy Mortgage Refinancing Help

Finally, there is a place to find bankruptcy mortgage lenders that provide refinancing loans for people with credit problems after a bankruptcy or foreclosure. There could be changes coming to the bankruptcy laws in 2024, so get help locating the mortgage companies that are equipped to answer your questions on qualifying for a mortgage after a bankruptcy.

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There may be new choices for borrowers with low credit as the rules for refinancing with poor credit histories and refinancing after a bankruptcy have changed.

Refinance Home Loans for People with Damaged Credit, BK, Foreclosure & More

If you have less than perfect credit you know that qualifying for a refinance mortgage or home equity loan can be very difficult after a bankruptcy, foreclosure, short-sale and even credit counseling. Bankruptcies have become much more common in the last decade, due to the increasing consumer debt and instability in job marketplace. It is very important to rebound after a BK, and rebuild your credit.

Home refinancing is a great way to rebuild your credit scores quickly. FHA bad-credit loans enable borrowers to qualify for home refinancing 2 years after 7 or 11 bankruptcies are discharged. There are several subprime and FHA programs that enable borrowers to pay off their chapter 13 bankruptcy in a refinance loan if they have good payment history with their BK, and they have been paying on it for more than one year.

Bad credit refinance mortgages can be very difficult to get approved by a bank, so connecting with a lender that understands your needs and has experience getting a refinance mortgage after a bankruptcy approved in 2024 is essential.

How to Select the right Mortgage After a Bankruptcy:

Conventional, jumbo, FHA & VA, interest only, hybrid ARM’s and non-conforming subprime mortgages for refinancing regardless of your fico score or poor credit history. We will help you find companies that specialize in programs for home refinancing after a bankruptcy, short-sale or even foreclosure. Hard-money and sub-prime mortgage loans are not for everyone.

Ask your lending expert if there are other potential government programs designed to help people secure home loans with bad credit without being required to pay excessive closing costs and pre-payment penalties.

Re-Establish Credit Quickly: It is very important to re-establish credit after your bankruptcy has been discharged. Getting approved for a house loan with no credit after a bankruptcy is very difficult.

refinance bankruptcy

  • Learn More About 2024 Guidelines to Refinance a Mortgage After a Bankruptcy
  • Refinance Mortgages for Consolidation of Debt and Bad Loans
  • Get Help Understanding the Requirements for a Mortgage After a Bankruptcy
  • Is 2nd Mortgage Lien Stripping an Option for You?
  • Learn How to Eliminate 2nd Loans in Bankruptcies
  • See the Rules for Home Refinancing with a Chapter 7, 11 and 13.
  • Refinance Adjustable Rate Debt into a Home Refinance After Bankruptcy
  • Multiple FHA Refinance Programs Post Bankruptcy
  • Discover Reduced Monthly Payment Options with Fixed Rate Refinancing

Are you looking to refinance your bankruptcy into a new mortgage?
Nationwide announced several new bad-credit refinance loans for homeowners that had a chapter 7 or 13 bankruptcy discharged recently.

Refinancing after a Bankruptcy

Question: From Homeowner residing Ventura, California- “What are my Refinancing Options After a Bankruptcy in 2020?”

Answer: Bankruptcies have become more prevalent nationwide, with homeowners often grappling with unforeseen financial setbacks. In 2024, Fannie Mae, Freddie Mac, and FHA have introduced new mortgage regulations for post-bankruptcy refinancing. It is crucial to engage in discussions about your situation and objectives with an experienced loan officer.

Living in an imperfect world, individuals face job losses, unexpected hospital bills, and overwhelming debt. Occasionally, bankruptcy becomes the most viable financial option for families. Undertaking a second mortgage or refinancing an existing one entails significant responsibility, and, as your teacher emphasized long ago, there are “no bad questions.” Gaining a comprehensive understanding of your refinance options is prudent. To provide appropriate advice for your financial ventures, I have a few questions: What is the balance on your first mortgage? Do you have a second mortgage? What is your estimated home value? How much cash do you require, and what is the purpose (e.g., bill consolidation, investments, home improvements)? What is your credit score? Lastly, what is your current mortgage rate?

To recap the information you provided: You owe $227,000 on your first mortgage with a fixed rate of 7.25% for 30 years. Currently, you do not have a second mortgage. You estimate your home’s value at $295,000 based on recent neighborhood sales. Your credit score is believed to be 665, and you have maintained a timely payment record since your bankruptcy four and a half years ago.

Exploring mortgage refinancing post-bankruptcy can offer numerous benefits, especially if you aim to pay off high-interest credit cards or other secured loans, as it provides substantial funds for interest settlement.

 Linda Nelms is a Financial Advisor, Loan Officer and Free-Lance Writer.

FHA refinancing has become a great alternative to subprime lending. Borrowers with less than perfect credit like FHA programs because interest rates are low, the credit guidelines are flexible, and the liens are insured by the U.S. government. Even though HUD discontinued the FHA Secure and Hope for Homeowners programs, the Department of Housing and Urban Development continues to reach out to distressed homeowners with programs like the Emergency Homeowner Loan Program that enables eligible borrowers to be approved for a FHA loan with poor credit scores.

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