Can You Qualify For Home Loan With Late Payments After Bankruptcy?

A Chapter 7 Bankruptcy is a federal debt relief law that a consumer can use to wipe out all or most of their debts and have a fresh start on their financial life. Debts such as credit card debts, judgments, installment loans, personal debts, and other non-government debts can discharged through a Chapter 7 Bankruptcy. There are certain debts that cannot be discharged through a Chapter 7 Bankruptcy such as student loans, government loans, child support payments, and tax debts and tax liens. Once a debt from a creditor is discharged through a bankruptcy, the consumer no longer owes the debt and they are no longer responsible to pay that debt. All unsatisfied judgments also gets discharged and the consumer does not have to worry about getting any future collection activities from the judgment creditor such as wage garnishments, bank levy, or having liens placed on their assets. Home buyers can qualify for a home loan after a Chapter 7 Bankruptcy, however, late payments after bankruptcy is often frowned upon mortgage lenders. Late payments after bankruptcy can be deal killers in getting qualified for home loans after bankruptcy.

Qualifying For Home Loan After Bankruptcy

People can definitely get a home loan after bankruptcy and the majority of folks who filed bankruptcy eventually have become homeowners in as little as two years from their bankruptcy discharged date. One of the major issues where getting a home loan after bankruptcy becomes a major issue is if you had late payments after bankruptcy. Most mortgage companies will disqualify any mortgage loan applicants who had late payments after bankruptcy and foreclosure as well as mortgage loan applicants who had late payments after short sale. Mortgage lenders are more than happy to lend on mortgage loan borrowers with prior bankruptcies, however, mortgage lenders do expect that they do not have no late payments after bankruptcy, re-established credit after bankruptcy, and steady employment after bankruptcy. Just because you have good credit scores after bankruptcy does not meet the credit criteria. Your credit history and payment history after bankruptcy will carefully be analyzed and reviewed as well.

What If I Am Told That I Do Not Qualify For Mortgage Due To Late Payments After Bankruptcy?

I have many calls from mortgage loan borrowers who are told by a mortgage lender that they do not qualify for a home loan and will never qualify for a home loan because they had late payments after bankruptcy. Many mortgage lenders will not budge on this rule and will automatically disqualify a mortgage loan borrower who had late payments after bankruptcy and foreclosure. However, there are solutions to overcome this major issue and I have helped countless of mortgage loan borrowers with late payments after bankruptcy and foreclosure. If you were told that you do not qualify for a mortgage due to late payments after a Chapter 7 Bankruptcy, please contact me at 262-716-8151 or email me at gcho@gustancho.com so I review your credit profile and see if we can come up with a solution that will fit and suit your credit profile and implement them so we can qualify you for a home loan.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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