Bankruptcy Aftermath: Mortgages and Refinancing Your Home After Your Arizona Bankruptcy Case

When you were researching filing for bankruptcy in Arizona, you probably heard horror stories from friends, neighbors, and “helpful” internet sites about how difficult it would be to ever live a normal life after your debts were dismissed. Whether people warned you about how hard it would be to get a credit card, or how hard it may be to buy a home or car, you have probably heard it all…that is why in this week’s newest Bankruptcy Aftermath, we are here to tell you the real story.

 

The naysayers were not wrong when they said that rebuilding your credit would be difficult, but the challenge lies in the commitment to a new financial lifestyle for the long term—once you do that, your credit will begin to build, slowly and surely. Paying your bills consistently, as well as using and paying off a credit card regularly, can set you up for stronger credit, as well as something the naysayers would never believe—a mortgage.

 

While there is a waiting period to be approved for a mortgage after bankruptcy—one to two years after a Chapter 13, and two to four years after a Chapter 7—if you have been consistently building your credit during the wait, your odds of bring approved for a new mortgage or refinancing an existing one are very good. If your bankruptcy was the direct result of an extreme hardship, such as a medical emergency or divorce, you may even be able to reduce your wait time for approval.

 

If you have emerged from bankruptcy and are ready to apply for a mortgage, let the Phoenix bankruptcy attorneys at Curry, Pearson & Wooten help you get started—call us now at 602-258-1000 to discuss your options!

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