How to Refinance Your Mortgage Loan After Chapter 7 or Chapter 13 Bankruptcy
Did you recently file for Chapter 13 Bankruptcy and need a mortgage refinance loan?
There is no question that filing for bankrupcty negatively impacts your credit file. Whenever you apply for a mortgage loan, credit card or even a small unsecured personal loan, your potential lender pulls your credit report. Having a bankrupcty or chargeoff on your credit report is a red flag that tells the lender that you are likely not to pay back your loan.
Can you refinance your mortgage loan after bankruptcy? The quick answer is "yes". You can get a home equity loan, HELOC or a cash out refinance loan, even after bankruptcy.
Getting A Mortgage Refinance Loan After Chapter 13 Bankruptcy
Chapter 13 Bankruptcy allows individuals to reorganize their finances. When a consumer files for chapter 13, the consumer proposes a plan to pay back his or her creditors over a 3 to 5 year period. During this period, the creditors cannot harrass or attempt to collect on any of the previously incurred debts.
For this reason, a person, who files a Chapter 13 bankruptcy can refinance their mortgage loan, 6 months after they file for bankruptcy.
Related : Is Bankruptcy Right For You?
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