ou have gone through obtaining a real estate mortgage.
bankruptcy and you do not Using the following improvement
owe anyone. Now is the steps, you actually can rebuild
perfect time to purchase that your credit in a relatively short
home you have always wanted — time.
right? Wrong! Yes, you can
probably locate a real estate First, get copies of your credit
mortgage lender, since you cannot report from the credit agencies,
declare chapter 7 bankruptcy and clean them up. You have the
again for at least 6 years. The right to one free report from all
problem is that you will pay the three agencies annually, which
highest finance charges for the can be obtained through privilege of obtaining that real href="http://www.annualcreditrepo
estate mortgage, charges that rt.com"
will extend over the life of the title="http://www.annualcreditrep
real estate loan. ort.com" target="_blank"> color="#001000"
Before even looking at real size="-2">http://www.annualcredit
estate, get your credit report.com.
straightened up first. The
bankruptcy will appear on all Ensure that creditors, who were
three of your credit reports from listed in your bankruptcy, have
seven-to-ten years, which will cleared their information from
make you a higher risk to real your credit reports. Otherwise,
estate lenders. You cannot do it will appear as if you still
anything about this; however, you owe them money and are not
can show real estate lenders that paying.
you are handling credit much
better now by rebuilding it. This Ensure any creditors not listed
can lower your risk factor, when in your bankruptcy and you are
paying regularly have been completed credit counseling, ask
reporting your good credit record them for something in writing to
to all three agencies. Contact that effect. It can help when
any not reporting this and ask applying for your real estate
them to do so. This will increase loan
your chances of getting a loan
for your real estate. The problem is finding a
reputable agency. Some are
If there was a specific event or downright questionable. Here are
cause for your bankruptcy, you a few ideas to assist you in
can add up to a 100-word locating a reputable agency:
explanation to your credit report
at each agency. The real estate • They should be a member of
lender will get this explanation either the National Foundation
as part of your credit report. for Credit Counseling or the
Association of Independent
It will look especially good to Consumer Credit Counseling
real estate lenders if you have Agencies. Both are national trade
received credit counseling, and associations.
the counseling will help you in
several ways. A good credit • Agencies approved by the U.S.
counseling agency will help you Trustee’s office (part of the
create a budget and counsel you Department of Justice) are good
in how to use and stick to it. agencies. You can see those for
They offer counseling on using your area at:
credit in your future, as well as href="http://www.usdoj.gov/ust/eo
how to re-establish your credit. /bapcpa/ccde/cc_approved.htm"
They can help you move toward title="http://www.usdoj.gov/ust/e
your goal of buying real estate. o/bapcpa/ccde/cc_approved.htm"
Once you have successfully target="_blank">
color="#001000" your remaining creditors through
size="-2">http://www.usdoj.gov/us them.
t/eo/bapcpa/ccde/cc_approved.htm<
/font>. • Check href="http://www.ftc.gov/bcp/conl
• Interview the agencies, asking ine/pubs/credit/fiscal.htm"
what they offer and the cost for title="http://www.ftc.gov/bcp/con
each service. Good agencies line/pubs/credit/fiscal.htm"
should meet with you for 60-to-90 target="_blank">minutes, reviewing your financial color="#001000"
situation and offering budgeting size="-2">http://www.ftc.gov/bcp/
advice — before doing any credit conline/pubs/credit/fiscal.htmrepair. ont> for more ideas from the
Federal Trade Commission.
• Ask for costs in writing from
the agency you choose. They Use the credit counseling
should charge around $50 or less, agencies to help you rebuild your
with budget counseling sessions credit the right way. It can take
for less than $20 each. less than a year to achieve; yet,
it will make a big difference
• Steer clear of those who push when you obtain that real estate
their debt management program, mortgage.
where they want you to pay all
About the Author:
John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more information please visit San Diego Realtor
Read more articles by: J Harris
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