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Davie Home Finance, 115 Donna Rd NE, Palm Bay, FL 32907
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Bankruptcy
Bankruptcy - A federal law whereby a person's assets are
turned over to a trustee and used to pay off outstanding
debts; this usually occurs when someone owes more than
they have the ability to repay.
Bankruptcy, generally in consumer home financing refers to
these types Chapter 13 and Chapter 7. A Chapter 13
bankruptcy allows the consumer to schedule a repayment
plan of debt, this process of repayment is usually scheduled
for a 3-5 year period. The payment process and scheduling
is set by the court and managed by the appointed trustee. A
Chapter 13 bankruptcy can be paid off through a refinance
of an existing mortgage, this is called a bankruptcy buyout.
Lending Institutions have strict guidelines in being approved
for a loan of this type. A Chapter 7 bankruptcy however can
be viewed as consumer debt liquidation. This allows the
bankruptcy court to liquidate or sell some of your property for
the benefit of the creditors. Generally a Chapter 7
bankruptcy takes about 4 to 6 months from start to finish.
Both types are functional for lending institutions and
consumers can still qualify for a home loan.
In some cases as a property owner you may be able to
refinance as an alternative to filing for bankruptcy. If you have
sufficient equity you may qualify for a home equity loan or
cash out refinance of your primary mortgage. The money you
receive from refinancing can be used to pay off debts to
avoid filing for bankruptcy. If you are considering bankruptcy
you should consult a lawyer as well as a mortgage broker to
discuss which option is best for you.
Many people assume that obtaining a mortgage to purchase
a home, refinance or to consolidate debt after a bankruptcy
is out of the question. In fact, many people are able to obtain
these mortgage services, even 1 day after a bankruptcy
discharge in some cases.
Bankruptcy - A federal law whereby a person's assets are
turned over to a trustee and used to pay off outstanding
debts; this usually occurs when someone owes more than
they have the ability to repay.
Bankruptcy, generally in consumer home financing refers to
these types Chapter 13 and Chapter 7. A Chapter 13
bankruptcy allows the consumer to schedule a repayment
plan of debt, this process of repayment is usually scheduled
for a 3-5 year period. The payment process and scheduling
is set by the court and managed by the appointed trustee. A
Chapter 13 bankruptcy can be paid off through a refinance
of an existing mortgage, this is called a bankruptcy buyout.
Lending Institutions have strict guidelines in being approved
for a loan of this type. A Chapter 7 bankruptcy however can
be viewed as consumer debt liquidation. This allows the
bankruptcy court to liquidate or sell some of your property for
the benefit of the creditors. Generally a Chapter 7
bankruptcy takes about 4 to 6 months from start to finish.
Both types are functional for lending institutions and
consumers can still qualify for a home loan.
In some cases as a property owner you may be able to
refinance as an alternative to filing for bankruptcy. If you have
sufficient equity you may qualify for a home equity loan or
cash out refinance of your primary mortgage. The money you
receive from refinancing can be used to pay off debts to
avoid filing for bankruptcy. If you are considering bankruptcy
you should consult a lawyer as well as a mortgage broker to
discuss which option is best for you.
Many people assume that obtaining a mortgage to purchase
a home, refinance or to consolidate debt after a bankruptcy
is out of the question. In fact, many people are able to obtain
these mortgage services, even 1 day after a bankruptcy
discharge in some cases.
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