Refinancing Second Mortgage after Declaring Bankruptcy

William M. Davis — Thu, 14 Jan 2010 09:59:28 +0000

If a person fails to pay his creditors and is legally declared unable to repay his creditors, then the term used is bankruptcy. Either the creditors can file bankruptcy against the individual or the individual can declare himself bankrupt. To declare bankruptcy, an individual needs to find legal and financial advice to make sure that this would be the best option. To deal with the immediate consequences of bankruptcy, the person needs time and it is recommended to try refinancing or a second mortgage after looking at all the other available options.

A second mortgage refinancing loan is possible to get after two years of bankruptcy. To opt for the second mortgage loan after declaring bankruptcy a person needs to ensure the following:

improve your credit score
clear your bad credit history
find a good lender
get good quotes for refinance rates

Options for You

If you have been declared bankrupt but you have cleared all your debts and have ended your period of bankruptcy there are a few options for you to get the second mortgage loan. You need to make sound financial plans to clear your debts and increase your credit score. Also you can put some restrictions on yourself so that you do not fall into a debt pattern they may have contributed to the situation.

Good Credit History

A good credit history will enable you to apply for a second mortgage loan after declaring bankruptcy. Your credit record is the key indicator for your lender. There are certain types of bankruptcy that are filed by or against you. The credit report will reflect a Chapter 13 bankruptcy for seven years and a Chapter 7 bankruptcy for ten years. Accumulating assets and paying bills on time will improve your credit history and you can become eligible to receive second mortgage refinancing.

Refinancing Rates

Searching for low refinancing rates can be a daunting task for you as there is so much information available. There are subprime brokers available on the websites for you to compare rates and fees. After comparing financial costs, you can get an estimated cost of the loan you are going to apply for. You may consider the top three lenders that you find trustworthy and reasonable, then go ahead and investigate them further.

Real Quotes Comparison

Mortgage loans are determined by various factors like property location, employment history, and credit score. A subprime broker needs all of this information to give you a realistic quote. After comparing these quotes including rates, fees, and terms of refinancing offer, you can proceed to the loan process. If you require any additional information, you may contact the subprime broker over the phone or through their website. You can then complete your application for the loan.

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