Loan Mods When You File for Bankruptcy
Before you apply for a loan modification after you file for bankruptcy, it’s a good idea to obtain copies of one’s credit report from each of the three major reporting agencies. Federal law allows one free report from each agency on an annual basis so this is the time to set up a regular schedule for obtaining, reviewing, and monitoring these reports. Individuals want to be sure that there are no mistakes on the reports and, if there are, that these errors are corrected as quickly as possible. Someone who has gone through Chapter 7 bankruptcy has two important tasks, to rebuild your credit history and saving money. Though the tasks might not be easy to accomplish, both are achievable by budgeting your income and paying bills in a timely manner. It should be achievable as most individuals after filing bankruptcy are debt-free.A person should wait at least six months before applying for a loan mod after you file bankruptcy. If it’s possible it’s probably better to get your loan modification before you file for bankruptcy. However, if you can’t, experts suggest it’s better to wait at least two years if possible. This gives the individual time to rebuild credit and show a record of making payments as obligated. When the time comes to applying, the homeowner may want to contact her current mortgage lender first. This institution may provide the best overall loan product, particularly if the homeowner hasn’t missed making any payments. Even so, after filing bankruptcy, this is not the time to rush into any contract. Individuals need to comparison shop both interest rates, lender fees, and closing costs to find not only the best deal, but a mortgage that improves their current financial situation.
