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It is a struggle to secure refinancing after a bankruptcy but with a solid plan of action and a few insider secrets you’ll be able to obtain the financing that you need for a home. According to the kind of bankruptcy which you may have underwent and whether a foreclosure was involved your eligibility time frame will vary before you are regarded as a perfect candidate for a refinance. To put it differently, roughly speaking if you’ve had a chapter 7 bankruptcy with no foreclosures then usually the waiting period is 2yrs. If you have had a mortgage foreclosure then it will be 3yrs, keeping in mind with this insane lending atmosphere we’re currently in. There are constant shifts in the industry so you should definitely talk with a loan office for existing requirements before you move forward with the application. It is important to note that different financial institutions have different rules determined by their interpretation of the regulations so ensure you take this into account. Vitally Important Home Loan Points to Follow If you are about to apply for a refinance and have a past bankruptcy you must first review your credit report. Check the score and assess the details of the report. Generally you will find errors on the report especially if a bankruptcy is involved. Items linked to the bankruptcy could be left out and this can have additional negative effects on your credit and you definitely do not want this. Bad Credit Mortgage Loan If items associated with the bankruptcy are correctly displayed the overall credit score might not be adversely impacted. However if they are erroneous it would have a negative impact on the credit score. Compare the specifics of your credit report with your list of items that would be included with your bankruptcy, this will be the paperwork you got from the bankruptcy. Everything should match but if they don’t you will have to open a dispute with the credit bureaus online to have them eliminated completely or changed to what it should actually reflect. Just so you know, they could be eliminated if it was reported inaccurately. To obtain a copy of your credit score you can go to annualcreditreport.com where you can obtain one free report annually. They don’t include the score but you can pay extra for one if you’d like to have it. How High Does Your Credit Score Need to Be When Recovering from Damaged Credit? Generally lenders really want to see scores which are 620 and above with no defaults reflected on the credit report following the bankruptcy or foreclosure. This ideal is not inflexible but it’s a good principle for you to keep in mind as you prepare to submit your application for a refinance. You may be able to get by with a 580 score (for FHA loans) but commonly if your score is under 620 this will be viewed as no indication of a reestablished positive credit rating on your credit report. Your lenders might require several accounts with a positive history in excess of one year. Now if you’re reading this and have damaged and or dented credit but never a bankruptcy or foreclosure and you want to purchase a home or refinance, it is possible to do this with a 580 score and in rare cases as low as a 530. What you must understand is that in any instance where the credit is below the normal industry standards the more in depth the lender will analyze the credit and the file. This sometimes equals to supplying more documents and sometimes showing you have a few months worth of monthly mortgage payments saved up for emergencies. Refinancing after BankruptcyFinal Notes You can get yourself reestablished following a bankruptcy if you have a solid strategy and follow it. If you are planning to buy a home you can make it a reality. Take a good look at your circumstance and follow the guidelines above and very soon you’ll be moving toward securing your financing. On the other hand if you do nothing and simply hope your credit gets better, never taking action to reestablish yourself it won’t happen on its own. I know you might not know me from Adam but I’ve been in the mortgage business for some time and I have seen many, many people get back on their feet following a bankruptcy and so can you. I’ll be rooting for you so now make a plan and take action.

Call Realtor Agata Grudzinski @ (850) 708-7724 for Property Details.