Reapplying for Home Mortgage After Bankruptcy

: Chris Lee Law Firm

  Filed under: Mortgage

mortgageContrary to popular belief, it is possible to apply for and receive another mortgage after filing for Fort Worth bankruptcy. But it is important to understand the proper way of going about the process. Chapter 7 bankruptcy requires the debtor to completely discharge the debt before applying for a new mortgage. Chapter 13 bankruptcy allows the debtor to apply as soon as a repayment plan has been put in place. While these are the technical rules, it is important to understand the practicalities behind them.

Be Willing and Ready to Wait

While the bankruptcy laws technically allow you to apply sooner, in all likelihood you will be required to wait between two and three years before being considered for financing. It is more likely you will end up waiting closer to three years. Banks and lenders are giving you a chance to prove your financial responsibility again, so don’t take this time period lightly.

Be Realistic About the Fine Print

During this three year period you should get your frame of mind right. Put yourself in the lender’s position and understand that they will likely be very conservative in their dealings with you. Don’t expect great terms and rates on your first mortgage after bankruptcy. But do remember that you can prove your worth while waiting. Paying bills on time and staying out of debt can help you attain a better mortgage than you otherwise would have thought.

Keep Your Job

Creditors will be reviewing all of your financial statements and numbers when eventually considering you for a mortgage. The best thing you can do for yourself is to show stability. By staying at one job and producing a consistent income, creditors will be much more likely to offer you a loan.


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