Tips in Buying a House After Bankruptcy

2007-03-08 10:33:40

( Financial )



If you want to rebuild your life after declaring bankruptcy, you should have certain strategies that can help you with such a task. Actually, that’s exactly the reason why people file for bankruptcy – so that people can start a new life despite all previous mistakes and past misfortunes.

The best indication that you’ve recovered would be a new house. It might not be as grand as your old one, but still, it would be fresh. It would provide you with a new atmosphere and a sense of accomplishment. It would signify that you’ve actually done something about your situation despite reaching the zero mark in terms of financial matters in the past few years. It would be the real symbol of your new life.

However, buying a house after bankruptcy isn’t an easy task. Lenders usually find it hard to trust someone who has been bankrupt. This is a very reasonable attitude. Bank managers and presidents and their minions below them are all there to serve one purpose: to make the bank grow and be more profitable. You do not expect profit from someone fresh from declaring bankruptcy.

Buying a house after bankruptcy could only be done two years after declaring bankruptcy. Unless, of course, you had a really good record before all problems began. Lenders know that bankruptcy isn’t always a result of carelessness about financial matters. They understand that disasters such as floods, fires, earthquakes, accidents, or serious illnesses could also be the cause of bankruptcy. It would be easier to gain a lender’s trust if you became bankrupt because of something that wasn’t your fault; it shows that you are not really negligent when it comes to financial matters. Lenders would also take note of your current earnings so that they can be sure that you will pay your debt. Also, if you have an immensely impressive credit record after declaring bankruptcy, the lenders can even cut your waiting time shorter. At best, you could buy a house after just one year.

Buying a house after bankruptcy isn’t an easy task but it isn’t impossible. You just have to be determined and hardworking. There is always hope for a new life, and a new house.


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