Refinancing after Bankruptcy

So, your bankrupt, but you got to keep your house and now you are looking for some ways to look at refinancing after bankruptcy. Your in luck, there are ways, but you need to be careful to do things right to make sure you can handle the situation you are put in.

Note, this page focuses exclusively on refinancing after bankruptcy. If you are interested in some of the other refinancing options or articles, see the links below.

Bankruptcy And Refinancing

Mortgage Refinancing Bankruptcy

Bankruptcy Mortgage Refinancing

Home Refinancing After Bankruptcy

Refinancing Your Home After Bankruptcy

OK, on with the refinancing after bankruptcy details.

Evaluate Your Personal Financial Situation

How much can you really afford? Be realistic, in this area. A good rule of thumb is that your mortgage payment, taxes, insurance and heat should account for 30% of your take home pay. This will give you a good amount of "wiggle" room when it comes to meeting your other financial obligations.

Contact an experienced Mortgage Broker
A mortgage broker should know all the products on the market. They will work to understand exactly where you stand, when it comes to your whole financial picture. A mortgage broker will not usually receive a fee from you, but will be paid by the financial institution that finances the loan. A broker should be able to give you timely advice on how the handle dealing with your problems.

Be comfortable with what the broker arranges
There is no obligation to do any kind of refinancing, if you don't like what the broker has offered you, politely decline and pursue other options. If you are using a good broker, he may have found the best possible scenario for somebody in your position. This means you will have to pursue other options.

If your payment is still unaffordable
If after you have looked at refinancing, you still find your payment is not affordable you will need to look at two other possible options. The first option is to increase your income. This can be done by adding a roommate, starting a small business, taking on a extra job, or selling items on craigslist and ebay. If you are unsuccessful doing this, you will have to consider selling your home and moving to something that fits into your budget. Even though, this is a hard decision it is better to sell and move than to lose your home to foreclosure.

Evaluate Your Financial Habits
Looking at refinancing, can seem like a very easy option to improve your monthly cash flow, but don't be deceived you are not getting rid of debt and payments, you are moving it, you will need to make sure whatever caused bankruptcy in your life has been rectified so you won't repeat the same mistakes again.

The process of refinancing after bankruptcy is not necessarily easy, and will require patience and a commitment to the program and the terms that the lender lays out. Even though, the end outcome may be frustrating, remember the quicker new financial credit habits are formed the cheaper your house payment will become.

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