Every bankruptcy debtor yearns to rebuild their credit. Whatever drove them to bankruptcy did no favors to their creditworthiness. The need for a new loan can be imperative to a homeowner in Chapter 13 who needs a better interest rate, a recomputed loan term, or just needs out of Chapter 13 with a discharge. Here's what it takes to get a home loan after filing bankruptcy, from a mortgage broker who's been doing it for decades in Northern California, Bob Schuman. New real estate financing and Chapter 13 are not as incompatible as some assume. A debtor can obtain financing during a Chapter 13 by paying off the creditors in full or by remaining in the plan. If the borrower chooses to remain in Chapter 13, for the most part, all that is required is to pay off liens on the property and pay the remaining debts as provided by the plan. Liens include the mortgage(s), HOA dues, outstanding property taxes, and any other debt with a lien on the property — including … [Continue reading...]
