Bankruptcy Equity Home Loan / Bankruptcy Equity Home Loan Options — No comments
02
Feb 10
If you are in the process of considering whether to file for bankruptcy then one of the factors that you may be considering is whether you should endeavor to make use of the equity in your home to assist you in the bankruptcy settlement process. Entering into a bankruptcy arrangement does not automatically free either you or your home from the security that may be placed on that home by a mortgage provider. Indeed it does not typically lift any liens that are secured against your property. However this does not necessarily prevent you from making use of the equity through a bankruptcy equity home loan, although this may depend upon the particular type of bankrutpcy that you are considering filing.
In very simple terms when someone files for bankruptcy they are declaring to the world that they are unable to repay their debts. There are two types of bankruptcy filings that tend to be the most popular route to bankruptcy. These are Chapter 7 and Chapter 11. The particular conditions relating to the treatment of property in each case differs, and perhaps worse still the rules differ from state to state.
As a result if you believe that you might benefit from a bankruptcy equity home loan then you really need to seek relevant and experienced legal advice. Without such advice you may well find that during the bankruptcy process you lose more than you need to, or some avenue which you believed to be available to you, such as the equity available in your property is closed off.
It is also worth pointing out at this point that although the process of filing for bankruptcy will adversely, in fact very significantly, affect your credit score, one of the best ways to rebuild your credit is to try to take out a safe loan after bankruptcy and ensure that you repay the loan on time and within the terms. Such a loan may not be easy to get hold of but the bankruptcy equity home loan, provided you still have access to the equity in your home may just be one avenue that remains open to you. Again, the stakes are high in all these matters and it is therefore very important that you do not proceed without good quality legal advice to help you steer your way through the issues that you will face in these stressful times.
Bankruptcy Equity Home Loan — No comments
30
Jan 10
If you have recently gone through the process of bankruptcy it is likely that you will have found that your ability to raise new money through borrowing will be either limited or severely limited. If you do need to raise money through borrowing, as many do, maybe for home improvements, maybe for a much needed holiday, or just simply for college tuition then you are quite likely to come up against dead end after dead end. The one saving grace might be that you own your own home, because if you own your own home then the possibilities of raising a home equity loan despite bankruptcy may still be realistic. You can potentially still get a home equity loan after bankruptcy, which we call a bankruptcy equity home loan.
It will not surprise you of course that following a bankruptcy process the banks, credit unions and other lenders would be cautious about lending you any money, but most especially a personal unsecured loan or provide you with a credit card. Your credit history will count against you almost disastrously. But, home equity loans are another matter. Remember they are secured on your property, or at least the equity in your property (equity being the difference between the value of your home and the outstanding amount on your mortgage), and as a result the lenders or relevant financial institutions are more inclined to consider the loan as a great deal less risky. In fact they will potentially view it as so much less risky that they will overcome their reserve and be pre-disposed to lend you the money (provided of course you are able to satisfy them that the equity in your property is indeed real).
Now, before continuing, a word of warning. If you take out a home equity loan it is secured on your property. This means that if you do not keep up the repayments on your loan the lender may well end up forcing a sale of your property in order to realise sufficient funds in order to settle their outstanding debt. As a bankrupt, with very little in the way of financial strength in depth this process would be nothing short of catastrophe. The message here is to take care. Bankruptcy is stressful enough. Do not take the risk of getting into more financial difficulties unless you are absolutely sure that you can cope with it. However, if you are going to pursue this path the bankruptcy equity home loan is one of the better paths to follow.
Bankruptcy Equity Home Loan / Benefits — No comments
25
Jan 10
If you’re reading this you will probably know that bankruptcy is actually a very good way of preventing a mortgage lender from foreclosing on your property, allowing you to retain your home, stop it from being repossessed, and also maintaining enough equity in the property to allow you to take out a post bankruptcy equity home loan. That’s the good news. the bad news is that as the number of people who are forced to file for bankruptcy increases mortgage lenders have increasingly expanded their offering into this market. Unfortunately, this interest has been because they see an opportunity to charge very high interest rates thus taking advantage of the very people who are most vulnerable due to their circumstances.
You may also know that home equity loan can put you in a position where you may be able to avoid bankruptcy so the question is when should you apply for an equity home loan prior to declaring bankruptcy and when should you wait until you have declared bankruptcy? The answer to this question is more straightforward than it might at first seem. File for bankruptcy as soon as you believe you ought to. The reason for this is that if you wait you may well lose some of the time and space that you need in order to re-plan your financial affairs.
After bankruptcy, there is a drawback however. Because of your financial position lenders will take advantage and seek to get you to agree to very high rates of interest. This may well be something you simply have to put up with because clearly you may not have a choice you may simply have to have the funds.
The key of course to all this is to recognize at the beginning that higher interest rates are a likely outcome and set yourself a target of do sufficient research to make sure that you get yourself the best possible bankruptcy equity home loan deal. This might mean that you have to approach more lenders than otherwise you would have done. It might mean that you have to work a great deal harder than somebody who is not in a position would have to do. Unfortunately that is going to be a symptom of almost every activity in respect of your financial affairs from here on in and is a reflection of the difficulties you have faced in the past. The best outcomes will be achieved if you simply accept this and get on with it.
Finally, a word of advice. One of the benefits of taking out a bankruptcy equity home loan is that it can start you on the road to recovering a decent credit score. So even if you don’t necessarily think that you need the money if you believe that you can stay up-to-date with any payments that need making then it may well be worth pursuing a bankruptcy equity home loan and start improving your credit standing as soon as possible.
Bankruptcy Equity Home Loan Providers — No comments
14
Jan 10
Now for some reluctantly given but necessary advice. You are a bankrupt. This means that you will not be able to get the best rates on home equity loans. However this does not mean that you will not be able to get a decent interest rate on your loan, only that you have to be realistic, the best rates will be reserved for the best credit risks, and property aside, the fact of your bankruptcy means you are not a strong credit risk. The upshot of this is that you will have to work hard at getting your bankruptcy equity home loan.
The first place you should try is probably your existing mortgage lender. They have the most recent experience of you as a borrower and if you have kept up with your repayments then you will already have passed two of the lending hurdles, that of being known to the lender and having a payment history. If they are comfortable with you as a mortgage holder and are happy that you have kept up to date with your payments then they may well be willing to provide you with further funds. In addition they may well be willing to match the mortgage rate you are being charged which would be a good result. If they do then you would describe this as a bad credit home loan mortgage.
If your mortgage company offers you a deal then this is great. But if they do and especially if they don’t you should not stop there. You should carry on and request quotes from other lenders who profess to offer money in exchange for security on your property. This process of looking around for the best possible offer is not only best practice, home equity loans are usually sizeable and the time spent looking for the right one will save you a great deal of money in the long run. Don’t be afraid to try a number of different sources. As a bankrupt you are unlikely to suffer unduly from requesting quotes from as many lenders as is necessary. Remember, and you should not let this get you down, even with a property as security many lenders will still not be interested in providing a home equity loan after bankruptcy.
You should aim to select at least four to five offers from different bankruptcy equity home loan providers. Compare the length of the loans, the monthly repayment amounts and the interest rates on the loan. Put the offers in a column, and then the criteria you think are important in a row and mark the offers accordingly. Be systematic and the best offer for you will become clear quite quickly.
As a bankrupt, the bankruptcy equity home loan will never be easy to achieve, but with a property on your side and a bit of perseverance a good deal is very much achievable.
Benefits — No comments
03
Jan 10
In these difficult times the home equity loan is potentially a lifeline of credit for many families. If you are also a bankrupt then this lifeline can mean more to you than ever. The bankruptcy equity home loan can seem as though it is literally a life-saver.
There are many reasons why access to a credit line that can be safely drawn against the equity value of your property, available when you need it and making sure that you make the most of the assets that you own. You might use a home equity loan for debt consolidation purposes, or just to catch up on a number of outstanding commitments. You might use them to improve the rates that you are currently paying on your existing debts or pay off credit cards. The reason why home equity loans are good for this is because typically have lower interest rates charged. The lower interest rates are a result of the fact that the lender is more comfortable that the loan will be repaid than unsecured loans, due to the security of the property.
Often home equity loans are a preferred option for raising finance because they are less troublesome, quicker and less expensive in the form of charges. The process of remortgaging a property can be time consuming from a research perspective, complex from a transactional perspective and quite stressful. Whereas the home equity loan is comparatively less fraught with problems and complexities despite giving access to similar sums of money. However don’t forget we are talking about a bad credit home equity mortgage and these are potentially slightly more complicated that otherwise.
You can see, hopefully, that the bankruptcy equity home loan is an extremely useful way to borrow money when almost all other avenues for new credit will be closed to you. There is less hassle in raising the necessary funds and less risk to you as an individual. So if you are trying to raise money whilst being a bankrupt there are few better options available than this one.