Getting a Mortgage After Chapter 11 Bankruptcy Is Possible
We understand that getting a mortgage after Chapter 11 Bankruptcy, is a goal for many clients. Unlike other banks, Peoples Bank has a department dedicated to helping borrowers obtain a mortgage after bankruptcy.We are able to offer mortgages as soon as one day after a completed Chapter 11 Bankruptcy plan. Start the next chapter and meet your mortgage goals today.
Speak with one of our Mortgage Consultants about obtaining a mortgage after bankruptcy. Select either the Purchase or Refinance Consultation Request form below or by calling (843) 606-6058 or toll-free at (855) 406-0197.
What is a Chapter 11 Bankruptcy?
When you file for Chapter 11 bankruptcy it is often referred to as a “reorganization” bankruptcy, and almost anyone can file for Chapter 11 Bankruptcy. Additionally Chapter 11 Bankruptcies are more complex and expensive, and repayment plans are setup to last 3-5 years. It is possible for a debtor to request more time be added to a bankruptcy plan in order to make good on the payment amounts. A Chapter 11 Bankruptcy does give you the ability to discharge your debt, however you are able to discharge more debt with a Chapter 13 case. You can read more about the details of filing for Chapter 11 Bankruptcy on the United States Courts “Chapter 11 – Bankruptcy Basics“.
What is the Process for Obtaining a Mortgage After Chapter 11 Bankruptcy?
Here’s a step-by-step rundown on how our Chapter 11 bankruptcy home loan process works:
1) Initial Consultation
Prospective borrowers speak with one of our Mortgage Consultants about their goals and what they are looking to accomplish. The consultation provides the borrower with the foundation they need to pursue the appropriate loan product. We address the most common stumbling blocks that our Chapter 11 Bankruptcy borrowers face on the front end.
2) Home Loan Application
The borrower completes our loan application either online, on the phone, or in person. We are available to guide the borrower through the application should any questions arise.
3) 3-In-1 Credit Review
We run a 3-in-1 credit report, and after careful review, we consult with the borrower about a range of topics from verification of accounts to updating credit inaccuracies that are common with our Chapter 11 Bankruptcy clients.
4) Mortgage Loan Request Submission
With the help of our processing specialists, we gather all the necessary information required to submit the loan request to underwriting.
5) Removing Existing Conditions
Next, Peoples Bank Mortgage and the borrower will receive a list of conditions from the underwriter that will request further clarification specifically to address problems associated with our Chapter 11 Bankruptcy clients.
5) Clear to close
From here, final documentation is collected, final insurance and escrows are arranged, and a closing date is set with the closing attorney or the appropriate escrow agent.
6) Closing
You’ve done it! All final documents are reviewed, signed, witnessed, and notarized.
7) Staying in touch
Peoples Bank Mortgage keeps in touch with the borrower through a yearly mortgage review, quarterly newsletters, and personalized updates about mortgage trends.