Buying a Home With Bad Credit - Get Approved With a Recent Bankruptcy or Foreclosure - Answering Service Resources

Home
>
Mortgage Refinance
>
Buying a Home With Bad Credit - Get Approved With a Recent Bankruptcy or Foreclosure

Buying a Home With Bad Credit - Get Approved With a Recent Bankruptcy or Foreclosure

A few years ago, if you had a bankruptcy or a foreclosure on your credit report, you could forget about trying to get a mortgage loan. If you were lucky enough to find someone who would finance you, your interest rate would be through the roof and plan on putting 10-20% down.

But today, this is not the case. There are many programs available today to help people who have recently suffered a bankruptcy or foreclosure to get a mortgage loan or mortgage refinance loan.

There are two things to do if you are in this situation:

1. Get yourself a free copy of your credit report from all 3 major credit bureaus, look over everything, do you see any mistakes? Make sure everything included in your bankruptcy or foreclosure reports accurately on your credit report. Make sure those accounts involved in a bankruptcy or foreclosure are not showing something else like collection or charge-off.. That could make your score much lower than it needs to be. If you have a bankruptcy or foreclosure, you want everything involved to say so, so it is all under 1 circumstance, instead of many. You can dispute all errors on your credit report online nowadays. It takes about 15 minutes. You can do it right on the website of Equifax, TransUnion or Experian.

2. Once you have checked your credit reports, apply only to places that submit your application to many lenders. Every time your credit report is pulled, it will knock your credit score down a little. If you apply to a mortgage service that will submit your application to many lenders, then you only have one credit inquiry and can receive offers from up to 4 lenders per application.

Frequently asked questions are:

1. Will I have to make a large down payment? Not necessarily. If you can get your credit score above a 600, you should easily be able to get 100% financing, even if it has been less than two years since your bankruptcy or foreclosure. If your score is above a 580, you might still be able to qualify for 100% financing.

2. What kind of interest rate can I expect? Depending on your credit score and whether you have any down payment or not, I have heard of situations with a credit score as low as 585 with no down payment and an interest rate as low as 7.25%. That was quoted in March of 2005.

3. Can I get cash out? On a purchase, not likely. On a refinance, depending on your amount of equity, that is very possible.

There are many lenders who specialize in bad credit mortgage loans. To view our list of recommended bad credit mortgage lenders, visit this page: bad credit mortgage loans. These are the best lenders to apply with.

Written by Carrie Reeder, Owner of http://www.abcloanguide.com. Carrie's website is an informational mortgage loan website. Her website has articles and a list of recommended mortgage lenders for people with low credit scores.

In The News:

Killer Startups
FreeHomeRefi.com - Mortgage Refinancing Resources
Killer Startups, FL - Oct 10, 2008
It is a handful resource for people who want to have their mortgage refinancing done in a simple way. â€œFree Home Refi is committed to providing consumers ...

The Truth About Mortgage Refinancing Revealed By Oregon Mortgage ...
SBWire (press release), WI - Oct 8, 2008
The site is designed to give Oregon residents all the facts about mortgage refinancing so they can make an educated decision when obtaining a mortgage. ...

Christian Science Monitor
Mortgage refinancing wave seen silver lining to market woe
Reuters - Sep 15, 2008
Yields on mortgage-backed securities that also dictate rates lenders can offer also fell, albeit to a lesser degree. The 30-year fixed rate on Monday ...
Applications to refinance mortgages surge as rates drop below 6% USA Today
Fickle Mortgage Market Demands Quick Decisions Washington Post
Lenders' woes could aid borrowers Boston Globe
Newsday - Wall Street Journalall 221 news articles

ARM Holders Would Do Well to Shop Around Now
Washington Post, United States - 3 hours ago
When Torres refinanced his Georgetown home in 2005, he got a five-year, adjustable-rate jumbo mortgage. (It's a jumbo because it's above $417000. ...

Boston Globe
Principal is key to housing solution
Winston-Salem Journal, NC - Oct 10, 2008
It will not ensure that proper lending standards are applied, nor will it guarantee that households will be able to refinance mortgages where the amount ...
Video: Obama: 'Taxpayers Shouldn't Pick Up Tab' AssociatedPress
Mortgage rescue plan would be costly, and may fall short Detroit Free Press
Taxpayers, Not Lenders, Would Bear Costs of McCain’s Mortgage Proposal New York Times
Newsday - Wall Street Journal Blogsall 1,059 news articles

New York Daily News
Homeowners have new option
Seattle Post Intelligencer - Oct 10, 2008
The Hope for Homeowners plan is supposed to help up to 400000 homeowners who can't afford their mortgage payments and who can't refinance to get a lower ...
New program offers financial help for homeowners The Union Leader
all 10 news articles

Sify
McCain sells mortgage plan
Boston Globe, United States - Oct 11, 2008
Under his plan, the government would spend about $300 billion to buy distressed mortgages from financial institutions at their face values, then refinance ...
What about the economy Obama, McCain? James Klurfeld Newsday
all 982 news articles

Majority backs McCain’s $300B mortgage plan
Bizjournals.com, NC - Oct 10, 2008
John McCain, R-Ariz., that would have the federal government buy distressed and upside down mortgages and refinance them so homeowners can avoid ...

In market for a mortgage?
Portsmouth Herald News, NH - 41 minutes ago
What could possibly be wrong with refinancing your mortgage if you can lower your interest rate? Since the Federal Reserve lowered short-term interest rates ...

More homeowners owe more than home's value
Canton Repository (subscription), OH - 6 hours ago
One reason is that as home values slip, growing numbers of would-be borrowers lack sufficient equity to refinance. The falling values also make mortgage ...

mortgage refinance - Google News

Answering Service ResourceAnswering Service Resource