Bankruptcy and Real Estate: All You Need to Know
One of the common misconceptions about bankruptcy is that, after you declare it, your life can never be the same again. The reality, however, doesn’t have to be that way. Contact your bankruptcy attorney in Rancho Bernardo and find out how to manage your real estate after bankruptcy in a safe and efficient manner. Before that meeting takes place, here is all you need to know about the matter.
Can I sell my house after a bankruptcy discharge?
A bankruptcy discharge is the desired outcome every debtor hopes for from the moment of filing. However, although you know what to aspire to, how does a discharge actually influence your life? How does bankruptcy affect your credit report, how frequently can you file, and can you keep your car after declaring bankruptcy?
Filing for a bankruptcy plan will leave a mark on your life, but if you handle the situation with attentiveness and patience, you can get your life back on track once again.
Selling a property after a bankruptcy discharge
If you’re thinking about selling your house after your debt clearance is granted, here are the answers you were looking for.
The short answer is: Yes, you can sell your house after a bankruptcy discharge. However, the long answer to this question is more complex, and it will require the help of your reliable, experienced attorney.
Discharged bankruptcy doesn’t necessarily mean that your case is finalized and closed. Consult with your legal representative to get precise information and guidance according to your specific case.
How to buy a house after bankruptcy?
No law prevents you from buying a house after bankruptcy. However, in your attempts to do so, you might find that most lenders will be reluctant to approve any new loan in your name.
If you are thinking about buying a piece of real estate after a bankruptcy discharge, here are the steps to take to ensure your purchase goes as planned:
- As bankruptcies leave an impact on credit reports, the first thing you must do after the discharge of your debts is granted is review and repair your credit. This process may take a while, but if it’s carried out with patience, it will significantly improve your chances of getting a new loan.
- The alternative to waiting for the bankruptcy penalty to expire is trying to rebuild your credit. It is a good course of action as this step can make your wait for the desired purchase considerably shorter.
- While working on rebuilding your credit, start saving for the down payment and set a reasonable budget.
- Plan to maximize your down payment, to make sure you’ll qualify for the chosen mortgage more easily.
- Think long and hard about what sort of house you are looking to buy.
- Last but not least, a crucial step to take before engaging property purchase is reviewing your credit score and making sure it is as high as possible.
How long after bankruptcy can you buy a house?
FHA, USDA, and VA loan programs are usually the best choice for most borrowers. Still, bear in mind that factors like your credit score, savings or lack thereof, and foreclosure can affect your ability to get a new house loan.
In the case of Chapter 13, it can take between 25 days and 2 months while Chapter 7 typically requires 2 years before you can get a mortgage again.
Sell or buy a Rancho Bernardo home in accordance with the law
Once your bankruptcy gets discharged, you’ll feel like a tremendous weight was lifted off your shoulders. However, the process of getting your life back is still not over, and relaxing at the Black Mountain Park might have to wait a bit.
With the help of an experienced bankruptcy attorney in Rancho Bernardo, your real estate purchase or sale will be safe, efficient, and in accordance with the law. Contact the law offices of Chang & Diamond today and schedule your first consultation.