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Deborah Said:

if you file bankruptcy, are mortgage lenders more or less likely to work with you for a modification?

We Answered:

I am a bankruptcy legal assistant and within the past year this issue has come up almost daily. We always tell clients to apply for a loan modification. At most mortgage companies, they require you to be at least 3 months behind on your mortgage. The majority of Chapter 13 clients are more than 3 months behind on their mortgage, so that is usually not an issue. They will send you an application where you will have to list your expenses, show proof of income, sign a tax return order form, and write a hardship letter. Many clients to get approved for loan modifications, however they are generally not as helpful as most think they are. The biggest selling point is a loan mod will usually take your mortgage arrearages and add them to the principal balance. This is good for when you are in a chapter 13 because your attorney will probably be able to lower your plan payment depending on what your arrearages are. It may lower your interest rate, but many don't. It may lower your monthly mortgage payment, but usually not significantly. The loan mods that come across my desk do not usually lower the principal balance, mostly because of the mortgage arrearages. On this plus side, it will make you current on your home payments. This means that if for some reason you dismissed your bankruptcy or the Trustee dismissed your bankruptcy, you would be able to keep your home since it would be current, as long as you are making your monthly mortgage payments.

Daniel Said:

What's the best way to find a mortgage after bankruptcy?

We Answered:

I agree with Kute about your credit, between when you were discharged and the end of 7 years you have the best credit there is, since you can not file another bankruptcy during that time. Here are some links that you need to do research in.
Once per year free credit report from all three credit reporting agencies:
http://www.annualcreditreport.com/cra/in…
Answers to common questions on Bankruptcy*: http://www.consumerlaw.org/action_agenda…
Using credit wisely after bankruptcy*: http://www.consumerlaw.org/action_agenda…
You should be able to find members in your area that will help you and guide you through the loan process here
American Bankers Association: http://www.aba.com/Consumer+Connection/d…
Mortgage Brokers Associaton: http://www.namb.org/namb/Default.asp
Buena Suerte

Nathan Said:

how do i get a home loan after a bankruptcy. Any mortgage lenders suggested?

We Answered:

the foreclosure will keep you out of ownership for at least 4 years at this point in time

Sherry Said:

Mortgage lenders for bankruptcy filers?

We Answered:

If your Chapter 13 has not been discharged yet, you won't find any lender willing to give you a loan. In fact, you need the court's permission to apply for ANY new credit.

If you've had a change of finances, perhaps you should talk to your bankrupcy lawyer about going back to court to adjust your chapter 13 plan or to convert to chapter 7.

Besides, moving to another state would involve a lot of expenses -- cost of moving household goods, deposits and start up fees for utilities... where will you get that money?