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Mortgage After Bankruptcy?
Will filing bankruptcy crush your dreams of homeownership forever? When you need to file for bankruptcy, you might wonder about the future. It’s smart to ask these kinds of questions. When your debts become unmanageable, bankruptcy can relieve some or all of your debts. However, yes, it most certainly will affect your ability to qualify for a mortgage.
When filing bankruptcy, it stays on your credit report for 7-10 years. However, there is light at the end of the tunnel. Odds are, if can’t pay your current bills, loans, and expenses, you can’t get a mortgage right now anyway. Filing for bankruptcy may put you in a better position to qualify for a loan in the future. Plus, it might not be as far away as you think! Why?
- The impact of bankruptcy on your credit report lessens over time.
- Depending on the type of loan, and the measures you’ve taken to build credit, you might be eligible for a loan in just a few years. (This also depends on type of bankruptcy you file and if you can afford it.)
There are different kinds of bankruptcy and mortgage loans, so it is important to find legal counsel that is knowledgeable and has your best interest. Your lawyers at Whitten & Whitten can explain what options are available to you. Every case is different, and everyone has different hopes and aspirations for what happens after bankruptcy is discharged.