This article may be republished, but the wording must not be changed and the author links must remain active. By following this route, you will definitely get a bankruptcy mortgage refinance loan at lower interest rate with flexible repayment schedule. Most lenders prefer to wait until two years after your bankruptcy before considering a person for a mortgage loan. However, mortgage loan providers put some specific conditions for providing mortgage loan. Borrowers who have recently filed for bankruptcy may find it difficult to apply for a mortgage. Since your loan now seems not 'risky', the lender will reduce not only the interest rate but also the mortgage term. If you have bad credit and apply for a mortgage loan, more emphasis will be placed on your income your down payment. When your house mortgage is not paid, your mortgage lender will start foreclosure proceedings to enforce its' claim to your house. Often, when people get behind on their mortgage payments, their mortgage lender requires a lump sum payment of the arrearage. To proceed with the foreclosure action, your mortgage lender will have to ask the bankruptcy court for permission by asking that the "automatic stay" be lifted. Borrowers, who are able to present an impeccable payment history even after bankruptcy, may be able to apply for mortgage before the stipulated two years period. First, there are two fundamental bankruptcy rules which apply to mortgages:. Refinancing mortgage is mandatory whenever you apply for a secured loan. The home owner on the other hand knows that the repossession of their property through foreclosure is inevitable and they are prepared to listen to any proposition as long as it is legal and will prevent the necessity of foreclosure and possible bankruptcy. Mortgage loan providers place more importance on current income of such borrowers. This will happen as long as all your payments have been reported as on time to the credit bureau since your bankruptcy. Most of the people get utterly confused as to whether they should refinance their loan or not. Since your loan now seems not 'risky', the lender will reduce not only the interest rate but also the mortgage term. Since Chapter 13 is basically a bankruptcy court ordered payment plan, the rule is that you must continue to pay your monthly mortgage payments as long as your payment plan is in effect. Some mortgage lenders may have special plans for such borrowers based on their present credit worthiness. Normally receiving a down payment from the seller is illegal, but through these programs, it becomes legal. The mortgage banks were too rash and too eager in lending large sums of money to people without checking out if their real financial situation was strong enough for them to be able to handle such a large financial commitment. (There are exceptions for personal property, but not real property.). Most of the people get utterly confused as to whether they should refinance their loan or not. The basic bankruptcy rules for mortgages are the same for both types personal bankruptcy - Chapter 7 bankruptcy or Chapter 13 bankruptcy. When you file personal bankruptcy, there is an automatic temporary stopping of civil legal actions to collect most debts. By searching around you will likely find a lender willing to help you with your mortgage loan. Mortgage payments are calculated as equitable monthly installments that borrowers have to pay towards their mortgage.
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