Post Bankruptcy Re-Establishing Credit To Qualify For A Mortgage

This ARTICLE On Post Bankruptcy Re-Establishing Credit To Qualify For A Mortgage Was PUBLISHED On May 28th, 2020

Post Bankruptcy
Gustan Cho Associates

Post Bankruptcy Re-Establishing Credit To Qualify For A Mortgage:

  • Homebuyers can qualify for a mortgage after bankruptcy
  • Government and Conventional Mortgage Guidelines require a certain waiting period requirement to qualify for a homebuyer to wait in order to qualify for a mortgage
  • The waiting period requirements vary
  • The waiting period requirements depends on the type of mortgage program
  • Every mortgage program has its own waiting period requirements
  • However, all lenders do not want to see any late payments after bankruptcy
  • Late payments and/or derogatory after bankruptcy is considered very bad

Lenders classify borrowers with late payments and derogatory after bankruptcy, foreclosure, deed in lieu of foreclosure, short sale as second offenders.

How Lenders View Late Payments And Derogatory Credit After Bankruptcy

Most lenders do not want anything to do with borrowers with late payments and/or derogatory after bankruptcy:

  • One or two late payments after bankruptcy is not always a deal killer
  • However, multiple derogatory credit and late payments after bankruptcy is often viewed as a total disregard for credit and most lenders will not want any part of it
  • The good news is the team at Gustan Cho Associates have helped countless borrowers with late payments and derogatory credit after bankruptcy
  • Derogatory credit prior to filing bankruptcy is alright
  • However, make sure a creditor prior to you filing bankruptcy does not come after Post Bankruptcy

In this article, we will discuss and cover Post Bankruptcy Re-Establishing Credit To Qualify For A Mortgage.

How Lenders View Post Bankruptcy Re-Establishing Credit To Qualify For A Mortgage

Lenders are more than eager to extend credit for a mortgage after bankruptcy.

  • Lenders understand people can go through a financial crisis due to various extenuating circumstances such as loss of employment, loss of business, divorce, medical issues, or other reasons
  • However, lenders do want to see no late payments and/or derogatory credit after bankruptcy
  • Lenders also want to see re-established credit after bankruptcy with perfect timely payments
  • It is not just a matter of waiting out the mandatory waiting period after bankruptcy

More importantly is perfect timely payments and no derogatory credit after bankruptcy.

Creditors And Debt Collectors Contacting You After Bankruptcy

Who are the creditors and debt collectors with whom we contact after bankruptcy?

All bad non-exempt debts prior to filing bankruptcy can be wiped out and discharged.

  • Creditors and collection agencies are prohibited from contacting you and trying to collect after filing bankruptcy
  • After you filed your bankruptcy successfully and has been discharged, there are fines and penalties for creditors and collection agencies who try and collect on accounts included in your bankruptcy

James Miller of Miller and Miller Law LLC, a prominent bankruptcy law firm endorsed by Gustan Cho Associates Mortgage Group said the following:

There are two overlapping Federal laws that prevent creditors from attempting to collect on debts that were listed in your bankruptcy. Debt collectors may be violating the Discharge Order of the Bankruptcy Court, or the Fair Debt Collections Practices Act. Often, they are violating both at the same time! If you are being contacted in any way by a creditor or collection agency that was listed in your bankruptcy, we want to know about it. Miller & Miller is serious about protecting your rights even AFTER your bankruptcy. We stand behind the work we did together. And these creditors should NOT be getting away with it!

There are actions consumers can take when they are still getting contacted by creditors after filing bankruptcy. This holds especially true if they are still contacting consumers after the bankruptcy has been discharged.

What To Do If You Are Getting Contacted By Creditors And Collection Agencies Post Bankruptcy

Milwaukee Bankruptcy Attorney James Miller of Miller and Miller Law LLC recommends the following steps to be taken if consumers are being approached by creditors and collection agencies Post Bankruptcy:

  • Make notes of dates and times of calls/emails/contacts from creditor or collection agency.
  • Save any and all voicemails
  • Obtain copies of cell phone bills
  • Take a photo of the Caller ID
  • Tell the caller you filed bankruptcy, your case number and date that you filed
  • Make sure you have disputed this debt with all three credit reporting agencies, if it is still showing on your credit report
  • Call your attorney to inform them of the activity and your documentation

Under no circumstances should you be contacted by older creditors and collection agencies after your bankruptcy.

Knowing Your Rights During And Post Bankruptcy

James Miller said the following with regards of creditors and collection agencies contacting consumers.

Some of these violations are considered “strict” liability, meaning the creditor doesn’t have to do much more than know you have been discharged in bankruptcy and call you anyway, for it to be illegal, no matter what they say. But what they say and how they say it may matter for other causes of action and damages. The point is, bankruptcy lawyers are on your side. This shouldn’t be happening. And we are ready to fight for YOUR rights. You did so much work to file this case, and you are on your way to a new life. Don’t let these illegal actions stand in your way.

Debts That Was Not Included In Your Bankruptcy

What do you mean by debts that have not been included in your bankruptcy

There are instances when consumers did not include all of their debts prior to filing bankruptcy. So what happens in cases where the petitioner did not include all of their debts in the bankruptcy petition? Are they liable? Are those debts not discharged? Does the consumer need to pay debts that were not listed? The answer is NO. You are not liable for any debts that has not been included in your bankruptcy petition as long as the debts are debts incurred prior to your bankruptcy filing. Let the creditor know that you filed bankruptcy. If the creditor and/or collection agencies make a stink about not being listed in the list of creditors on your bankruptcy filing, contact your bankruptcy attorney. Let the bankruptcy attorney know that you have creditors that you forgot to list on the bankruptcy petition. Your bankruptcy attorney will amend your bankruptcy and include the creditors and/or debts not included in your bankruptcy petition. You are not liable for any debts prior to your bankruptcy petition. There will be charge for making an amendment to your bankruptcy.

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