Posted: 2 Jan

Steps to Mortgage Refinancing After Bankruptcy

While the intent of bankruptcy is to clear away much of your debt, you will likely incur a degree of stress while undergoing the process. While, in many instances, you may be able to keep your home, your ability to refinance your mortgage may become somewhat restricted.

Keeping your home permanently will depend on your ability to obtain mortgage refinancing after bankruptcy. If you need to refinance your mortgage soon after the bankruptcy procedure, your existing bank will likely be reluctant to release any new funds.

Also, other prime lenders will view your damaged credit standing in a negative light and may also forego lending you money.

Finding Mortgage Refinancing After Bankruptcy

Bad credit mortgages are available. These are designed to help homeowners remain in their homes, make regular payments, and rebuild their credit rating in order to refinance later. After two or three years of responsible debt management, timely payments, and rising credit ratings, you should be able to refinance again with a prime lender.

Clearly your credit or beacon score will be in poor shape immediately following a bankruptcy. An experienced mortgage broker will have lenders that are more interested in reviewing:

  • Your current income and employment status
  • Value of your property
  • Condition of the property
  • Other assets you may own

How a Bad Credit Mortgage Broker Can Help

Assuming you were able to keep your home following a bankruptcy procedure, here are some steps to mortgage refinancing after bankruptcy with a bad credit rating.

  1. Visit a reputable bad credit mortgage broker. In Edmonton, many borrowers have accessed mortgage refinancing after bankruptcy by working with experienced mortgage brokers and advisors like Dominion Lending Centres. These companies will counsel you in ways to improve your qualifications for a new mortgage and help you find an agreeable lender.
  2. Your credit rating is the most important component of future borrowing. You should begin immediately to develop a responsible spending plan that will contribute to a rising credit score.
  3. Apply for a new credit card and make payments in a timely manner. If possible, pay the entire balance each month to avoid interest charges while building up your credit score.
  4. If you have been turned away by a prime lender, a mortgage broker can help you find a conventional lender who specializes in bad credit. If that doesn’t work, a mortgage broker can help you find a private mortgage lender who will help you keep your house.
  5. No matter your circumstance it is important to talk to an expert mortgage broker that specializes in poor credit ratings who can find the best solution for you.

Contact Dominion Lending Centres

Mortgage refinancing after bankruptcy is possible. With the help of a knowledgeable and considerate mortgage broker, you can begin to rebuild on your credit standing while remaining in your home.

With new mortgage refinancing after bankruptcy, the stigma of the bankruptcy will fade after a few years when you chose to apply for conventional, lower interest rate refinancing.

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