Filing bankruptcy prevents the lender from foreclosing on your property during the automatic stay even if you are behind on your mortgage payments.
Under Chapter 7 bankruptcy one may elect to keep one’s home so long as one keeps paying the mortgage and the amount of home equity is under the allowable exemption amount.
Under Chapter 13 bankruptcy late mortgage payment may be allowed to be a part of the court ordered repayment plan even if your home equity is above the exemption amount.
It is possible to obtain a mortgage after bankruptcy. A bankruptcy is a negative credit, however by following the guidance provided to you by our Riverside bankruptcy attorney will help you rebuild your credit after bankruptcy. Mortgage lenders will take notice of your post bankruptcy credit if you pay your post bankruptcy debts on time and in full. A mortgage is often available in as little as 1 year after filing bankruptcy.
After bankruptcy, mortgage lenders often allow those who already own homes to refinance high interest mortgages where the borrower has improved their post-bankruptcy credit score. A refinancing of your mortgage after bankruptcy can lower payments and improve your finances by lower your debt to equity ratio.
