If i file for bankruptcy can i still buy a house?
by Author on Thursday, September 2nd, 2010 | 7 Comments
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Bankruptcy stays on your record for 7-10 years. Your willingness to walk away from debt will be noted by all those you apply for a loan from. This will not be viewed as a positive. And in today’s credit climate people with good credit records are having difficulty getting good mortgages. So if you decide to file bankruptcy and walk away from thousands in debt you owe, don’t expect to be buying a home any time soon. Unless of course you plan on paying cash. Something which sounds very unlikely considering you’re considering filing for bankruptcy.
Think about this, would you loan money to somebody who walked away from thousands they previously owed you? If so, can I borrow some money?
If you are asking if you could get a mortgage – not anytime soon.
About 5 years or so if you are lucky, first you will have to build your credit score above 700 and will take a long time if you do not have to many credit cards with large balances. Pay a week early and always pay more than the minimum amount due like an extra $20.00 or so. Nobody said it would be easy.
You need to get your crap in order before you even think about buying a house. Getting a mortgage certainly won’t help your current position, so you need to get on a written budget and work your way out of the mess you’re in.
Most money problems are 80% behavior. Declaring bankruptcy doesn’t fix your behavior. YOU have to do that for yourself.
You can have a decent credit score in 1-2 years of filing if you work on rebuilding your credit.
You can purchase a house 2 years after you file bankruptcy. You have to rebuild your credit. by doing things like purchasing a new car even if you reaffirm (keep) your old vehicle The old vehicle is not reported to the credit bureau. You will start to receive a lot of credit card offers in the mail, pick two that fit you the best and keep them 20% or below your balance. Pay more than you owe if you can’t pay the whole balance at the end of the month. and remember when you file bankruptcy you are starting over so go slow, be positive and make it happen for you. It is not hard to get a house after you file bankruptcy and the credit score only needs to be above 585. I speaking from personal experience.
Yes you can get a house. With the economy right now, you may have to have a large down payment.
You wont be able to get a house through major mortgage companies and you might have to way 2 years to get a mortgage, but yes, you will be able to.