For those that need the answer to the question that entails filing for bankruptcy and the affects it will have on a mortgage, the answers are right here.
Basically any bankruptcy will affect any existing mortgage and most-definitely affect the future home ownership world.
The two types of bankruptcies that are most-popular in the United States are Chapter 7 and Chapter 13.
Both of these chapters have varying impacts upon an existing mortgage.
In a Chapter 7 bankruptcy, filing the possibility of retaining home ownership even after the mortgage has been deemed cleared and paid in full is very good.
Sometimes the home must be given back to the bank but overall this is not the case.
What is the normal scenario in many bankruptcy cases is that the home is retained through a process called reaffirming.
Even though the home is deemed 'untouchable' by the Chapter 7 bankruptcy payment arrangement, the homeowner(s) will still have to make what's called reaffirming the mortgage before they can retain the house.
By reaffirming a mortgage the homeowners have saved their home even after filing and having a dismissal or a discharge of a Chapter 7 bankruptcy.
By filing the reaffirmation agreement the mortgage company has been offered an out as we must recall that the bank rarely desires that home back.
They do not want it, as they just want a monthly payment.
The bank is normally open-arms and more than happy to work with the homeowner and also through a plan that can clear the delinquent account within a specified time.
Many homeowners find this is a means to an end for the situation as all they wanted to do was to climb out of the hole that they had dug.
Some times the threatening of the loss of the home, by no fault of their own, is enough to get the ball rolling towards keeping current on that all-important mortgage.
Many homeowners who retain their homes consider this the number one reason for filing bankruptcy and are totally agreeable to any other repayment plan regarding credit cards and hospital bills and car loans.
Another scenario that could happen is not so sunny with individual homeowners.
This dramatic ending to a chapter 7 or at times even a chapter 13, is what's called the deficiency after foreclosure sale.
This is the act of repaying out the chargeback and consists of a monetary amount that is the difference between how much the mortgage company was able to sell the home for and how much was left being still owed after the sale.
The bottom line when filing for bankruptcy and being in the market for a home, is that the chapter 7 or 13 only makes it harder to attain a mortgage.
The lenders do not want to offer credit to somebody who's just gone through a bankruptcy proceeding and that's when they will make you wait and prove oneself for two-years.
This does not have to be seen as a negative impact though since you'll need those 24 months to pay off some of the smaller debts and reestablish your credit file.
If you are a lucky individual and retained your income or even close to it, then all is good and you can be seen as a good credit risk after two years.
This is stemming from the essential fact that you now have clean, disposable income.
The goal is to be in the homeowner Club of America, and you can do this even after the nightmare of a bankruptcy.
Basically any bankruptcy will affect any existing mortgage and most-definitely affect the future home ownership world.
The two types of bankruptcies that are most-popular in the United States are Chapter 7 and Chapter 13.
Both of these chapters have varying impacts upon an existing mortgage.
In a Chapter 7 bankruptcy, filing the possibility of retaining home ownership even after the mortgage has been deemed cleared and paid in full is very good.
Sometimes the home must be given back to the bank but overall this is not the case.
What is the normal scenario in many bankruptcy cases is that the home is retained through a process called reaffirming.
Even though the home is deemed 'untouchable' by the Chapter 7 bankruptcy payment arrangement, the homeowner(s) will still have to make what's called reaffirming the mortgage before they can retain the house.
By reaffirming a mortgage the homeowners have saved their home even after filing and having a dismissal or a discharge of a Chapter 7 bankruptcy.
By filing the reaffirmation agreement the mortgage company has been offered an out as we must recall that the bank rarely desires that home back.
They do not want it, as they just want a monthly payment.
The bank is normally open-arms and more than happy to work with the homeowner and also through a plan that can clear the delinquent account within a specified time.
Many homeowners find this is a means to an end for the situation as all they wanted to do was to climb out of the hole that they had dug.
Some times the threatening of the loss of the home, by no fault of their own, is enough to get the ball rolling towards keeping current on that all-important mortgage.
Many homeowners who retain their homes consider this the number one reason for filing bankruptcy and are totally agreeable to any other repayment plan regarding credit cards and hospital bills and car loans.
Another scenario that could happen is not so sunny with individual homeowners.
This dramatic ending to a chapter 7 or at times even a chapter 13, is what's called the deficiency after foreclosure sale.
This is the act of repaying out the chargeback and consists of a monetary amount that is the difference between how much the mortgage company was able to sell the home for and how much was left being still owed after the sale.
The bottom line when filing for bankruptcy and being in the market for a home, is that the chapter 7 or 13 only makes it harder to attain a mortgage.
The lenders do not want to offer credit to somebody who's just gone through a bankruptcy proceeding and that's when they will make you wait and prove oneself for two-years.
This does not have to be seen as a negative impact though since you'll need those 24 months to pay off some of the smaller debts and reestablish your credit file.
If you are a lucky individual and retained your income or even close to it, then all is good and you can be seen as a good credit risk after two years.
This is stemming from the essential fact that you now have clean, disposable income.
The goal is to be in the homeowner Club of America, and you can do this even after the nightmare of a bankruptcy.
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