A few years ago, when I realized that I couldn't pay my mortgage anymore, I knew that I needed to do something to correct my finances. It seemed like I just couldn't catch a break, and after losing my job, I knew that I was in trouble. I started looking for new work, but I knew that I needed to fix my credit somehow. I was at the end of my rope, until a friend talked with me about the possibility of declaring bankruptcy. She explained that it helped her to start over. I met with a bankruptcy attorney who was incredible to work with, and I was amazed at how much it helped my situation. Check out this blog to learn how working with a bankruptcy professional could help you.
Chapter 7 bankruptcy is commonly used by individuals and businesses as a way of forgiving any outstanding debt. As a part of the bankruptcy agreement, a trustee is assigned to your case and that person is responsible for helping you liquidate all of your assets. The money received from the liquidation is used to pay off creditors. For many homeowners, this means that your home will be one of the assets that are liquidated. Therefore, you will eventually want to purchase a home again, but it can be difficult to receive financing due to your bankruptcy history. Luckily, there are a few tips that you can use to purchase a home of your own.
Purchase a Home Through an Auction
When homes are foreclosed on, the bank or lender is looking to recoup some of the money that they lost through the original owners. Instead of having the home sit there unused, they will send it to auction. At an auction, the homes have a low starting rate. Depending on the number of bidders, the ending price on the home can rise significantly. However, most of the homes being auctioned off are foreclosure homes, therefore, most bidders are not looking to pay market value for a foreclosed home. In many cases, you can win the home for significantly lower than what it is worth.
Look for a short-sell
A short-sell involves selling the home for less than the amount that is left on the balance of the mortgage. If you filed for bankruptcy and your home was sold, then there is a high chance that it was sold through a short-sell. A short-sell is used as a way to attract buyers to foreclosed homes. As a result, the bank ends up losing a large amount of money on the home. However, as long as you perform your due diligence, you can find a good home at an affordable price through a short-sell.
Purchase Your Home Back from the Bank
It is fairly common for former homeowners who filed for bankruptcy to attempt to purchase their home back from the bank. This can be difficult to do because the bank will often require a number of stipulations before they will even consider selling the home back to you. If you have cash, then your chances of repurchasing the home are higher. However, if you require financing, the bank will often require a large amount of money down a well as a high-interest rate.
Purchasing a home after you file for bankruptcy can be difficult to do. Therefore, use these tips to ensure that you are able to get a home of your own after your bankruptcy.
To learn more, contact a real estate attorney like Michael Adler.Share