Refinancing Your Home Mortgage After a Bankruptcy

What do you want of Home Loans After Bankruptcy ?.

Even if you don't have a changeable interest rate mortgage, but rather some secured debts that were not discharged by your bankruptcy (like a car payment or learner loans), you could save a lot of money with a debt consolidation home loan. You probably will pay a higher interest rate under a "bad credit" loan with a sub-prime lender. But, you could still save money by refinancing your first mortgage or second mortgage home loan. The following tips will help you find the best inherent refinance mortgage loan options.

Home Loans After Bankruptcy

1. Right after your bankruptcy is discharged, start establishment to refinance your first or 2nd mortgage loan by establishing good payment history. Pay your bills and current mortgage(s) on time each month. This will start to raise your prestige score.

2. Get your prestige reports from all three prestige bureaus--Experian, Equifax and TransUnion and make sure your bankruptcy accounts are accurately reported. Chances are all the 30 day, 60 day, 90 day, collection, and charge-off derogatory facts will still be on your prestige reports for the accounts that were discharged by your bankruptcy. Thus, the first thing you need to do is to make sure all these accounts are updated to say "included in bankruptcy." Under the Fair prestige Reporting Act (Fcra), both the buyer reporting department and the facts providers (creditors) are responsible for correcting any incorrect, incomplete or outdated facts in your report. Otherwise, your prestige score will be unnecessarily lowered, and you will probably more interest on your loan than you should.

3. Start researching mortgage lenders. Remember to keep interest rates, points and fees in mind, as well as the costs complex with refinancing. You definitely will pay a few ration points more than a original mortgage, so try to shop for a loan box with low fees.

4. Because of your bankruptcy, you are a target for predatory lending practices. Be sure you know the going rates for bad prestige loans with sub-prime lenders, pay close attentiveness to the terms of a loan along with the type of mortgage, the proximity of prepayment penalties, balloon payments, low or high down payment, mortgage assurance requirements, payment schedule, lock-in duration and other loan features before signing the papers.

5. Know your legal rights. The Federal reserve Board states that according to federal law, you have three business days after signing the loan papers to cancel the deal for any reason, without penalty. You must cancel in writing within the three-business-day window of time, and the lender must return any money you have paid to date. This legal security is for all consumers, even ones who are bankrupt.

6. Once you've refinanced your first or second home loan or debt consolidation loan, and you've kept up your payments on it, and all your other bills, shop for a new loan in about two years. You should get a much better interest rate and loan package.