How Can I Refinance My Mortgage After Bankruptcy?

June 17th, 2010 by Reed Allmand

How Can I Refinance My Home After Bankruptcy?Refinancing a mortgage after bankruptcy is definitely a possibility and sometimes a preferred option for debtors who have adjustable rate mortgages due to reset soon.  One of the biggest obstacles that debtors will need to overcome is a negative perception of their credit report by finance companies who may want to push them into subprime mortgages.  Below are a few tips on how a post-bankruptcy debtor can overcome this negative perception of their credit report:

  1. Immediately after receiving a bankruptcy discharge, a debtor should begin rebuilding their credit.  The first easy step they can take is to apply for a secured credit card and begin making regular payments.  The credit card issuer will report the credit card payment history to the credit bureau which will begin the process of rebuilding their credit.
  2. Continue making on-time mortgage payments after the bankruptcy discharge.  Having a good mortgage payment history reported on their credit report will go a long way in convincing mortgage refinance companies that the debtor is a good credit risk.
  3. If the debtor has a car note, they should continue to make payments on that car note in a timely fashion.  Timely payments to their car finance company are another indicator to future refinance companies that the debtor may be a good credit risk.
  4. Wait at least six months to a year after their bankruptcy discharge to apply for a mortgage refinance.  By waiting this time period, the debtor will give their credit report time to record their new positive payment behavior.
  5. Accumulate a good amount in a savings account after the bankruptcy discharge.  A debtor with a healthy savings account is more likely to convince finance companies that they are in fact a good credit risk.

avatar

About Reed Allmand

Website

Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

View all posts by Reed Allmand

Subscribe

Subscribe to our e-mail newsletter to receive updates.

FAQ

Why do I need to submit a new wage order when I modify my plan

When we modify your bankruptcy plan we are changing your plan payments. This means that we have to get with your employer and change the terms and amount of your wage order. The only way we can do that is by filling out a new wage order form.  

Learn More
What happens if the stay terminates on my home?

If the bankruptcy stay terminates on your home that means that even though your in bankruptcy, your creditor can pursue all there legal remedies they can pursue if you were not in bankruptcy. This includes foreclosure, and having your house sold and evicting you from your house.

Learn More

Find Location

map
  • Dallas Bankruptcy

    5646 Milton Street, Ste. 120 Dallas, Texas 75206
  • Fort Worth Bankruptcy

    860 Airport Freeway, Suite 401, Hurst, Texas 76054
  • More Locations

Meet Our Clients