The Short Answer is “Yes,” you can get a mortgage while in Bankruptcy. During any bankruptcy, there are a number of hurdles you may encounter when requesting new credit such as a mortgage. There are however ways to navigate these hurdles successfully. Here at Peoples Bank Mortgage, we specialize in assisting individuals who are struggling to get a mortgage during Chapter 13 bankruptcy. Learn more about how our bankruptcy mortgage division is able to help, and have you well on your way to getting a mortgage during bankruptcy.
Getting a Mortgage While in Chapter 13 Bankruptcy
Being granted permission for a mortgage while in bankruptcy involves communicating your intentions with your bankruptcy trustee, and sometimes even requiring their approval. Our team at Peoples Bank Mortgage, along with your bankruptcy attorney can help guide you towards getting a home loan during your bankruptcy. The bankruptcy trustee will grant permission to incur any new debt (in this case in the form of a mortgage). This typically happens after the trustee reviews your new monthly payment, and Pre-Qualification Letter.
The trustee will then investigate the request to ensure it is not fraudulent. If all aspects of the request are truthful and compliant, the bankruptcy trustee will evaluate the benefits of the request. Then your bankruptcy attorney will file a motion with the bankruptcy court. When the decision is finalized by the trustee, your attorney will inform you of whether or not, if your mortgage request was approved. In addition to this process, there are also further stipulations when working with a Chapter 13 trustee.
Mortgage During Bankruptcy and Your Trustee
When you choose to work with a Chapter 13 Bankruptcy trustee, you must pay back all of your debts within three to five years. The Chapter 13 trustee will oversee all aspects of the agreement to repay your debt. You must send the specific payment amount every month until your debt is paid in full. The reason for this timeline of payments is to ensure the creditors receive their funds in a timely manner. The creditors are assuming the risk of the debtor’s bankruptcy payment plan. Your trustee will determine if getting a mortgage during Chapter 13 bankruptcy will increase the likelihood that you will continue to make your regular payments. At the very least your new mortgage must not hinder your ability to repay your obligations.
Process of Getting a Mortgage While In Bankruptcy:
1) Consultation:
At Peoples Bank Mortgage, we understand that each bankruptcy situation is unique. Therefore, we offer a consultation to listen to your specific needs and analyze how we can help you obtain a mortgage during bankruptcy. During this consultation, we will also explain the different types of mortgages available to you and provide recommendations on the best options for your situation.
2) Analyze Your Situation:
We understand that obtaining a mortgage while in bankruptcy can be a challenging process. Therefore, we take the time to analyze your situation carefully. We will look at your credit score, your debt-to-income ratio, and your overall financial situation to determine your eligibility for a mortgage. If we find any areas that need improvement, we will provide guidance and suggestions to help you improve your chances of getting approved.
3) Review of Your Application:
Our experienced team of mortgage professionals will review your application to ensure that all the necessary information is included and that your new mortgage will put you in a better financial situation. We will verify your income, employment, and assets to ensure that you meet the minimum requirements for a mortgage. We will also check for any errors or discrepancies in your credit report and address them with you. This diligence will increase the likelihood that your trustee will approve your request to get a mortgage during bankruptcy.
4) Gathering of Information:
As part of the process, we will gather all the information needed for your trustee. We understand that different trustees may require different information, so we will work with your trustee to provide them with everything they need to approve your request for a mortgage during bankruptcy.
5) Application Process:
We offer several options for completing the application process. You can complete your application online, over the phone, or in-person. Our team will be there to guide you through the process, answer any questions you may have, and make sure that everything is completed accurately and on time.
6) 3-In-1 Credit Review:
As part of the process, we will perform a 3-in-1 credit review to determine your creditworthiness. This review will help us identify any inaccuracies in your credit report and work with you to correct them. By doing so, we can help you improve your credit score and increase your chances of getting approved for a mortgage.
7) Submitting Your Loan:
Once we have completed the necessary steps, we will submit your loan request to underwriting. Our team will work with the underwriter to address any issues or concerns and provide any additional information needed to approve your loan.
8) Final Review of Documents:
After all of the above is completed, we will confirm that the final insurance and escrows are correct, and schedule a closing date with your closing attorney or escrow agent. Our team will review all the documents with you, answer any questions you may have, and ensure that everything is in order before finalizing the loan.
9) Staying In Touch:
At Peoples Bank Mortgage, we value our relationship with our customers. We will stay in touch with you through an annual mortgage review, quarterly newsletters, and personalized updates on mortgage trends and other happenings in the industry. We are here to help you achieve your homeownership dreams, and we look forward to being your trusted mortgage partner.
Why Choose Us as Your Bankruptcy Mortgage Company?
We have an department specifically dedicated to helping you get a mortgage while in Chapter 13 bankruptcy. Due to this factor, we’ve become true specialists in the home loan market, and strive to provide our customers with the best service possible when going through the often difficult path of a Chapter 13 Bankruptcy filing. To learn more about our trusted process in helping you get a mortgage during bankruptcy, Contact Us! We’ll be sure to respond to your inquiry as soon as possible. We look forward to hearing from you soon!