BANKRUPTCY UPDATES

• Taking Your Credit Score from Bankrupt to Perfect 10 (May 21, 2012)
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• Book Publisher Houghton Mifflin Harcourt Files for Bankruptcy (May 17, 2012)
• Las Vegas Tycoon Lists $500 Million in Debts in Bankruptcy Filing (May 15, 2012)
• Nassau Broadcasting Sells its Assets in Bankruptcy Court (May 22, 2012)

Home Loans After Filing Bankruptcy

Bankruptcy is a process. It isn't an ending. Regardless of your reasons for filing now, it may be possible to get a home loan again in the future. While this may take work on your part to rebuild your credit score, many filers do indeed own homes.

Whether you're looking to protect your current home from foreclosure, or save your finances so you can one day make a purchase, bankruptcy has helped many people in similar situations. This video explains how many people have gone on to live their home-owning after filing.

Dialogue on Mortgages After Bankruptcy

HOMEOWNER: Call me corny, but I've always dreamed of a quaint house with a white picket fence and pristine grass since I was a little kid.

And while my dream of home ownership is still a bit down the road due to debt and other financial problems, one thing is for certain: I am never going to file bankruptcy.

Everyone knows that buying a home is impossible once you file bankruptcy. And that is one dream I'm not willing to sacrifice.

BANKRUPTCY ATTORNEY: In determining why you're going to be able to get financing on a home after bankruptcy it's important to understand what banks consider when determining whether or not to loan you money.

And probably the most important factor that they consider is your debt to income ratio.

In other words, how much outstanding debt you have relative to the income that you have to support those debt payments.

Now generally, a lender wants you to make a mortgage payment no greater than thirty percent of your gross monthly income.

So let's put this in perspective: Right now look at how much debt you have relative to your income. It it greater than thirty percent? Well then you don't have any expendable income available to make a payment towards a mortgage. And therefore, no lender is going to loan you that money.

Now after bankruptcy, without any outstanding debt, maybe you edge your way up to that thirty percent. And certainly over the next couple of years you may be able to do that.

Most lenders, most mortgage lenders, assuming you're able to show them you can make that thirty percent payment will be willing to loan you the money after eighteen to twenty four months. And I've seen it happen many times.

HOMEOWNER: So, home ownership if possible after bankruptcy. You know, I really could use a fresh financial start. I'm going to visit TotalBankruptcy.com and see what it has to say about filing bankruptcy and maintaining the American dream of home ownership.