Buying A House After Bankruptcy - Things To Consider
by: Carrie Reeder
Bankruptcy can make getting any kind of financing much more difficult. However, it's not impossible anymore to get financing, even a few days after the discharge of a bankruptcy. But, is getting a loan soon after a bankruptcy a smart thing to do?
It can be tempting to buy a new home, new car, etc., after a bankruptcy discharge you have no debt left. You will probably feel like you can afford a larger house payment. Here are some factors to consider before committing yourself to a new house payment.
Pre-Payment Penalty - Almost every subprime loan (bad credit loan) now comes with a pre-payment penalty. This penalty is usually about 6 months worth of house payments. The pre-payment penalty period usually lasts 2-3 years. That means, if you want to refinance or sell your house in that period of time, that will make it very difficult, if not impossible to sell or refinance. That means that you are locked in. Once you sign those mortgage papers you absolutely have to make those payments. If you don't have the amount of the pre-payment penalty in savings, you are locked into making the payments or losing the house.
Two Year Mark - Keep in mind that after 2-3 years from the date of the bankruptcy discharge, mortgage loans will be much easier to get. With a small down payment, you might even be able to get a mortgage loan without a pre-payment penalty. So, if you are within 6 months or so from the 2 year mark. It would be smart to wait it out and have more mortgage loan options.
Setting Yourself Up For Failure Again? Borrowing Too Much? - If you do decide to buy a house. Buy one that you know you will be able to afford. Don't max yourself out on credit, living right up to the edge of your income. If your income suddenly drops, you'll want to make sure that you can still afford your house payment. Be conservative with how much home you need to buy.
About The Author
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans. View our recommended http://www.abcloanguide.com/mortgageafterbankruptcy.shtml lenders.
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Debt Consolidation Scam Claims Repayment UnnecessaryDebt Consolidation Scam Claims Repayment Unnecessary
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by: Charles Essmeier
Most Americans have a problem with debt; the fact that the average household owes nearly $10,000 on their credit cards makes that pretty clear. And with interest rates and minimum credit card payments rising, consumers are finding their bills harder to pay each month. In years past, those who cannot repay their bills would often resort to filing for bankruptcy.
But last year's Bankruptcy Abuse and Consumer Protection Act makes filing for bankruptcy more difficult and expensive than ever. What is someone with a debt problem to do? Credit counseling? Debt consolidation? Something else?
According to a new company that has been issuing press releases, the consumer can simply walk away from his or her debt. That's right, just walk away without repaying. The details are vague, of course, and won't be spelled out until...
Debt Consolidation Scam Claims Repayment UnnecessaryDebt Consolidation Scam Claims Repayment Unnecessary
Bankruptcy > Debt Consolidation Scam Claims Repayment UnnecessaryDebt Consolidation Scam Claims Repayment Unnecessary
How To Avoid Bankruptcy & Get Out Of Debt Faster Using Debt Negotiation!
How To Avoid Bankruptcy & Get Out Of Debt Faster Using Debt Negotiation!
by: Kris Bickell
Has credit card debt got you thinking about bankruptcy?
You?re not the only one these days. Even with the new bankruptcy laws, credit card debt continues to climb. Unfortunately for most of us, our paychecks don?t climb as quickly.
If you?re on the verge of bankruptcy, you may have another alternative.
Debt negotiation is a process where you negotiate with your creditors to pay off your debts at a reduced amount ? for example, if you owe $12,000, you can negotiation a payoff of $5,000. The benefit for the creditor is that they get more money than they may have through bankruptcy, and they get the money sooner. The benefit for you is obvious ? you get out of debt faster, and save lots of money in interest.
Where do you get the money to pay off the debt?
Take the money you would have normally used to pay your credit card bills, put...
How To Avoid Bankruptcy & Get Out Of Debt Faster Using Debt Negotiation!
Bankruptcy > How To Avoid Bankruptcy & Get Out Of Debt Faster Using Debt Negotiation!
Atkins Declares Bankruptcy....is Low Carb Dead?
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by: Dan Robey
As many of you have already heard, Atkins Nutritionals Inc. the company that turned low carb eating into a worldwide diet craze has filed for bankruptcy court protection.
Does this mean that people did not lose weight on the Atkins diet?
Of course not, carbohydrate restriction has been proven to accelerate weight loss in the short term. Notice the last two words...short term. There is a simple reason why Atkins filed bankruptcy, people love to jump on the latest diet craze and then jump off just as quickly as they jumped on. When buyer demand slows, so do revenues.
People did lose weight, and lot's of it on the Atkins diet. The problem is that diets like the Atkins diet are hard to stick with long term. In fact, there has been little solid evidence to show that carbohydrate restriction can lead to permanent weight loss. What then is the key to permanent weight loss?
Bankruptcy > Atkins Declares Bankruptcy....is Low Carb Dead?
The New Bankruptcy Law "Means Test" Explained in Plain English
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by: Charles J. Phelan
With the new bankruptcy law in effect as of October 17, 2005, there is a lot of confusion with regard to the new "means test" requirement. The means test will be used by the courts to determine eligibility for Chapter 7 or Chapter 13 bankruptcy. The purpose of this article is to explain in plain language how the means test works, so that consumers can get a better idea of how they will be affected under the new rules.
When most people think of bankruptcy, they think in terms of Chapter 7, where the unsecured debts are normally discharged in full. Bankruptcy of any variety is a difficult ordeal at best, but at least with Chapter 7, a debtor can wipe out the debts in full and get a fresh start. Chapter 13, however, is another story, since the debtor must pay back a significant portion of the debt over a 3-5 year period, with 5 years being the standard under the...
The New Bankruptcy Law "Means Test" Explained in Plain English
Bankruptcy > The New Bankruptcy Law "Means Test" Explained in Plain English
Mortgage Loans After Bankruptcy
Mortgage Loans After Bankruptcy
by: Carrie Reeder
Many people believe that once they file for bankruptcy they will have a difficult time getting a mortgage loan. However, there is still hope for being approved even with a recent bankruptcy. If you have bad credit and apply for a mortgage loan, more emphasis will be placed on your income your down payment.
Most lenders prefer to wait until two years after your bankruptcy before considering a person for a mortgage loan. After these two years, it should be relatively easy to get financing. In addition, you will probably be able to get one hundred percent financing. This will happen as long as all your payments have been reported as on time to the credit bureau since your bankruptcy.
If you want to get a mortgage loan before the two year period is finished then you will need a pretty much flawless payment history since the time you filed for bankruptcy. In addition, you will need to provide...
Mortgage Loans After Bankruptcy
Bankruptcy > Mortgage Loans After Bankruptcy
A HUD Reverse Mortage For Retirement?
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HUD reverse mortgages can be a great tool for Seniors that are looking for additional funds for retirement. Through a HUD reverse mortgage, seniors can tap into the equity from their homes without having to make repayments.
HUD Reverse Mortgage Eligibility
Homeowners must meet the following criteria in order to be eligible for a HUD reverse mortgage:
- Homeowner must be age 62 or older.
-...
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