Qualifying for a new mortgage after bankruptcy
September 14, 2009
Lenders will check your credit score to see if you have been paying your bills on time since the bankruptcy; You’re entitled to check your score from the three major reporting agencies, TransUnion, Equifax and Experian, at least once for free every 12 months at AnnualCreditReport.com.
The Federal Housing Administration (FHA) requirements are looser: You need to pay all of your bills on time for a year after declaring bankruptcy. You can also boost your standing with the lender, as well as your credit score, by establishing new accounts and keeping them current, she says.
Bankruptcy Changes Lives
September 11, 2009
For people who are drowning in medical bills or credit card debt with no realistic hope of ever paying it off, bankruptcy can help. Collection agency calls, wage garnishment and the threat of lawsuits can take their toll and people can suffer under enormous financial, emotional and social strain.
Bankruptcy enables the person in over their heads to regain financial freedom and gain a fresh start. It is not a way for people to escape their responsibilities. Don Scott, a Los Angeles mortgage broker with 13 years’ experience, says, “The smart ones are the ones who spend time in the penalty box and get on with their lives.”