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  • Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
    --Donna
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
    --David
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
    --Anonymous
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
    --Anonymous
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
    --Joanna
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.
    --Danielle

Buying A Home After Bankruptcy

I realize that some of my clients will want to purchase a home after filing bankruptcy. Many prospective clients are concerned that bankruptcy may hurt their chances of obtaining financing. If homeownership is your goal, filing bankruptcy can actually help get you into a home sooner than negotiating and paying off debt.

Loan Types

There are many different types of home loans and some are easier to obtain after bankruptcy than others. Some loan types may also have waiting periods that you may need to be aware of before you are eligible to obtain financing.

  • VA Home Loans – Chapter 7 filers can obtain VA loans 1-2 years after receiving a discharge. If your Chapter 7 bankruptcy was discharged more than 1 but less than 2 years ago, you may still be eligible. You will need to have established a credit history after the bankruptcy.  Chapter 13 filers are eligible to obtain a VA loan immediately after completion of their bankruptcy. VA loans can also be obtained during a chapter 13 bankruptcy after 12 months of payments have been made and approval is granted by the court.
  • FHA Loans – Chapter 7 filers can receive approval for an FHA loan 2 years from the date their case is filed. Chapter 13 filers can also receive approval for a mortgage 12 months after their case is filed. All chapter 13 payments have to have been paid on time and approval has to be granted by the court.

Additional Financing Considerations

Many first-time home buyers take advantage of FHA loans that require a down payment of just 3%. FHA loans are appealing because they offer a low barrier of entry to home ownership. You may want to evaluate whether or not you will need Private Mortgage Insurance or PMI. Typically, when purchasing a home with a lower down payment, Private Mortgage Insurance may be required and it can potentially increase your monthly mortgage payment. However, it is possible to avoid having to pay for PMI with less than 20% and there are some lenders who are willing to pay your PMI insurance on your behalf in exchange for an increased interest rate.

Before You Finance

There are a few steps you can take to prepare before seeing out a lender.

  1. Check over your budget. – It is a good idea to have a game plan before obtaining financing. What is your prospective monthly payment? How much do you have available for a down payment? Do you have an emergency savings? Will your mortgage payment include your taxes and insurance or will there be separate expenses for property taxes and homeowner’s insurance?
  2. Check your credit score. – Having a good idea of your credit score and what is listed on your credit report is very important. Checking your score before applying for a loan also gives you the opportunity to clear up any errors or disputes that may be negatively impacting your credit. Don’t feel like you are required to use a lender who will hold FICO above all other factors. Instead, find a lender that does individual underwriting – a lender that looks that everything, including your income, assets, recent payment history, and character. One such lender is Churchill Mortgage, which is endorsed by Dave Ramsey. Also consider looking for a lender that will use alternative credit reporting services like eCredable (www.ecredable.com/marketplace).
  3. Research lenders requirements before applying – Some lenders will require a detailed letter explaining why you needed to file for bankruptcy in the first place. If you can explain and document extenuating circumstances that made it impossible to meet your financial obligations, a lender would be more likely to work with you.

If you have any questions about filing bankruptcy, or the after effects please feel free to reach out to your Modesto bankruptcy attorney at 209-438-4990.

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