Buying a Home After Bankruptcy Jamaica Plain MA

It may seem as though you cannot buy a home in Jamaica Plain after you have gone bankrupt, but this is not true. You can buy a home. In fact it may be to your best interest to buy a home because those who have experienced bankruptcy are actually encouraged to build credit by taking on debt.

Jennifer May Almeida
(617) 364-5299
1234 HYDE PARK AVE STE 102
BOSTON, MA
Specialties
Personal Injury, Bankruptcy, Criminal Defense
Education
New England School of Law,Boston University
State Licensing
Massachusetts

Total Bankruptcy has a participating attorney in MATTAPAN
(866) 525-2557
1651 Blue Hill Avenue
MATTAPAN, MA
Description
Take control of your finances today! We have an extensive nationwide network of local, sponsoring bankrupcty attorneys. Call to discuss your options for stopping creditor harassment. We also have information on filing for chapter 7 and chapter 13 bankruptcy. Personal bankruptcy may be an option for you. Call today!
Phone Hours
SUN - SAT 12:00AM - 12:00AM

Avi Liss
(617) 778-0363
53 Hereford Street
Boston, MA
Specialties
Landlord & Tenant, Bankruptcy, Real Estate, Chapter 7, Chapter 13
State Licensing
Massachusetts

James E. Howard
(617) 886-9322
One Thompson Ave Ste 201
Charlestown, MA
Specialties
Transportation, Bankruptcy, Commercial
Education
University of Pennsylvania Law School,Yale University
State Licensing
Massachusetts, Pennsylvania

John J Monaghan
(888) 688-8500
10 SAINT JAMES AVE
BOSTON, MA
Specialties
Bankruptcy
Education
Boston University School of Law,Middlebury College
State Licensing
Massachusetts

Richard Carey Hyman
(617) 910-3664
1259 Hyde Park Avenue, Suite 128
Hyde Park, MA
Specialties
Personal Injury, Workers Compensation, Social Security, Bankruptcy, Divorce
State Licensing
Massachusetts

Shannon J. Bayer
(617) 299-9197
40 Warren St. 3rd Floor
Charlestown, MA
Specialties
Immigration, Bankruptcy
Education
Suffolk University Law School
State Licensing
DC, Massachusetts

Reginald F Blanchard
(617) 282-5800
ASHMONT STATION 1939 DORCHESTER AVE
DORCHESTER CENTER, MA
Specialties
Bankruptcy, Personal Injury, Family, Real Estate
Education
Suffolk University Law School,City College of New York,University of Missouri
State Licensing
Massachusetts

Jonathan K Bernstein
(617) 341-7760
125 High Street
Boston, MA
Specialties
Banking, Financial Markets And Services, Corporate, Bankruptcy
Education
University of Pennsylvania Law School,Brandeis University
State Licensing
Connecticut, Massachusetts

Kerry S Kehoe
(617) 854-1451
10 SAINT JAMES AVE
BOSTON, MA
Specialties
Bankruptcy, Business
Education
Boston University School of Law,Harvard College
State Licensing
Massachusetts

Buying a Home After Bankruptcy

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It may seem as though you cannot buy a home after you have gone bankrupt, but this is not true. You can buy a home. In fact it may be to your best interest to buy a home because those who have experienced bankruptcy are actually encouraged to build credit by taking on debt.

It will not be easy, however. The problem is that these borrowers will be highly scrutinized, pay higher interest rates, and loans will come in smaller amounts because lenders will view them as high risk borrowers. These roadblocks should not stop someone who has gone bankrupt from buying a home, because taking on debt and paying off payments on time is the only way out of the downward spiral caused by a bankruptcy filing.

How Bankruptcy Will Affect Your Credit

Bankruptcy provides relief for people in poor financial straits. It is the last resort of action that will release them from their debts. However, a filing for bankruptcy will stay on a person’s credit rating for up to ten years, serving as a warning to anyone else who wishes to lend that person money.

This will cause any lenders to charge higher than normal interest rates in order to protect themselves from the likelihood that you will default. For example, an interest rate on an auto loan might normally be 6 percent, but for someone who has filed for bankruptcy, it might be 8 percent. However, as time goes on and payments are made on time, the filing for bankruptcy will become less important to the lender.

Rebuilding Credit after Bankruptcy

It is imperative that a good payment history is established after filing for bankruptcy. The following will help people who have filed for bankruptcy get back on their financial feet:

  • Pay bills on time. This is the best thing anyone who has filed for bankruptcy can do.

  • Use secured or unsecured credit cards and pay them off each month. Use them, but do not spend more than what you can pay off at the end of the month.

  • Read your credit report. Keeping up on your credit will keep you aware of your progress and any errors made by the credit company.

    When and How to Find a Home Loan

    Bankers and lenders want to see three things before lending money to a borrower following bankruptcy to ensure that the borrower is a good path financially:

    1. A two-year stretch of bills paid on time
    2. A down payment
    3. A steady income

    The biggest of these three things is a steady income. Some lenders, provided you can show that you have been paying your bills on time, will be willing to lend you money if they see that you have a steady flow of income. For example, if you have just come out of bankruptcy, but you have a small down payment and steady income, then it is not impossible for you to get a loan for a home right out of bankruptcy.

    Keep in mind that finding a good lender right out of bankruptcy will be difficult and may not be the best plan of action for the borrower. However, with a record of on time bills paid and a steady income, it is possible to get out of the proverbial hole bankruptcy has placed the borrower in.

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