Residents in Mississippi who struggle with unmanageable levels of debt may try to avoid filing for bankruptcy for many reasons. Some people may feel that seeking bankruptcy relief is a sign of personal failure. Others worry that the black mark they may receive on their credit reports may preclude them from getting credit again in the future and especially from buying a house someday. The reality is that all of these beliefs are incorrect.
When it comes to getting a home loan after filing for bankruptcy, it is definitely possible to do. As explained by The Mortgage Reports, consumers should expect to have to go through a waiting period before applying for a new mortgage. The length of time they will have to wait can vary in part on the type of loan they would be seeking. Generally speaking, wait times for mortgages after Chapter 7 bankruptcy discharges span from two to four years.
Smart Asset adds that if consumers also had previous foreclosures in addition to bankruptcies, they may have somewhat longer wait periods before they can obtain a new mortgage. One thing that can help people seeking a mortgage after filing for bankruptcy is to save a sizeable amount of money for a down payment. This will show potential lenders that they are able to save money which may increase their odds of getting a home loan.
Also recommended is that consumers be prepared and able to explain the reasons for their bankruptcy and, most importantly, how their situations have changed. This will help banks feel more confident that the same situation will not occur again.