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Refinancing a mortgage after bankruptcy

There are many benefits of bankruptcy. There are also some reasons why you may want to avoid this process for the time being.

If you decide to move forward, it’s common to have concerns about your future finances. For example, you may be wondering if it is possible to refinance a mortgage after bankruptcy.

Over the years, the process has evolved. For this reason, you may not fully understand how quickly you can refinance after filing for Chapter 7 or Chapter 13 bankruptcy.

With an FHA loan, for instance, there is a one year waiting period governed by the “Back to Work Program.”

To qualify, you must meet a variety of guidelines, including:

— You meet all conventional FHA loan requirements

— You have the ability to document the issues causing your hardship

— You have re-established your credit over the past year

— You have completed HUD-approved housing counseling

Are you interested in refinancing your mortgage while you are in bankruptcy? If so, the court will need to grant permission as you are taking on new debt. There is no guarantee the court will approve, but you won’t know for sure until you file a motion.

Some people realize the importance of being able to refinance their mortgage after bankruptcy. If this is something you are concerned with, it’s a good idea to learn more about the process, including how to qualify, before you file. This will go a long way in helping you decide how to move forward. The last thing you want is to think you can refinance at a certain time, just to find that this is not the case.

Source:, “How quickly can you refinance after a bankruptcy?,” Keith Gumbinger, April 26, 2016

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