Options To Purchasing A Home Following Bankruptcy When you have a mountain of personal debt, bankruptcy will allow the opportunity to start digging out of the mess. Debts will be discharged through a bankruptcy in Illinois such as credit card debt, debt incurred from medical bills, even mortgage and auto loans can be covered. Before you make the commitment, filing for bankruptcy protection is usually a serious matter which should be properly considered thoroughly. Speaking to an attorney that deals in bankruptcy in Illinois is also a good idea, one who can advise you of all the ramifications and consequences of declaring a bankruptcy. One significant consideration is that of household ownership. Keeping the home and the mortgage is unquestionably a viable option with some bankruptcy filings. Perhaps there is an emotional attachment or a specific need to keep the home rather than being forced to sell it. If you do sell the home, you will naturally need a place to live. Until their financial situation changes enough for them to be able to afford another home, lots of people and families who do file for bankruptcy will either live with friends and family or rent a place of their own they are able to easily afford. You will need to secure a home loan on any home unless you have the ability to pay cash for one. A waiting period is needed before you can get a loan when filing for bankruptcy where each variety of mortgage has its own provisions. If you plan to get a loan backed by the FHA (Federal Housing Authority) or the VA (Veteran's Affairs), you will need to wait at least 3 years following a Chapter 7 bankruptcy discharge before you are eligible. In 2 years if you can present extenuating circumstances that caused your bankruptcy filing, it is possible to be eligible for a a FHA or VA loan in most cases. You will be expected to wait 7 years after a Chapter 7 bankruptcy is you decide to get a conventional loan or one backed by mortgage loan giants Freddie Mac or Fannie Mae. The waiting period is reduced to 3 years if you are able to put a 10% deposit on the home and show extenuating circumstances that resulted in your filing for bankruptcy in Illinois. There are other methods for acquiring a home after bankruptcy. There are leases with options to purchase or you could think about purchasing property through seller financing. The homeowner in effect would act as the bank and accept payments towards the purchase of their house. The â€˜option' is a non-refundable down payment you pay to the homeowner for the option to buy the home several years in the future. In the meantime, you lease the property from the owner and make monthly installments. The amount of the option money as well as the amount of the lease payment can be negotiated, just as is the price you agree to pay for the home once you are qualified to buy in a few years. For both parties this agreement can be a win win where the homeowner is generating a revenue to cover their loan payment and has the security of a down payment while you await financing from FHA, VA or some other financial institution. Clearly, if bankruptcy in Illinois is possible to avoid, you should take whatever necessary steps to avoid doing so as the repercussions are dramatic, but if you must file, then you can put together a strategy that will get you back on track as fast as possible. Don't face bankruptcy in Rolling Meadows alone, instead, call Charles T. Newland & Associates, and allow them to explain to you the process and counsel you. For additional info on Charles T. Charles T. Newland & Associates
Options To Purchasing A Home Following Bankruptcy Newland & Associates, take a look at their web site at http://www.cnewlandassociates.com/.
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Charles T. Newland & Associates
Published on Apr 28, 2014
Don't face bankruptcy in Rolling Meadows alone, instead, call Charles T. Newland & Associates, and allow them to explain to you the process...