If you've filed bankruptcy in Georgia or a different state, you likely have many questions when it comes to future home buying. You went though a foreclosure, or narrowly averted one. Your credit cards were maxed out, so you had to file bankruptcy. You had a huge medical bill come in because you have no insurance, and you just couldn't pay it. There are a variety of scenarios, but the end result is the same: filing for help.
Filing bankruptcy has many pluses. Georgia, unfortunately, has experience with filers who were about to lose their home or in fact did. Sub prime mortgages are one major reason.
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Therefore, you may wonder if home buying is possible for you. Even if you've never owned a home, but filed bankruptcy, it's more than possible. You can consult with an experienced bankruptcy attorney if you have questions.
Why Bankruptcy?
First, you should be clear on why you filed bankruptcy before. If you've been considering it, this guide can clearly help you see what occurs to your credit. You can file Chapter 7 to discharge debt, or Chapter 13 to pay on debts and stave off foreclosure. Bankruptcy does hurt your credit scores in the eyes of lenders, but it does not mean you can never buy again.
Why Foreclosure?
The Georgia foreclosure process can be quite complex. It was mentioned above that sub prime mortgages hurt many Georgia home owners; Georgians were hit hard by sub prime mortgages leading to foreclosure. Basically, what occurs in foreclosure is your inability to keep up with the mortgage. While few lenders will foreclose for one missed payment, you need to take immediate action if you're going to miss several mortgage payments. If you can stop the foreclosure process before it begins, you have a better chance of keeping your home.
Bad Credit Does Not Equal No Home
Just because you file for bankruptcy does not mean you can never buy a home in Georgia or elsewhere again. True, if you have perfect credit, you pay much less. But few cannot buy a home because of credit. It may cost you more, but if lenders could only loan money to borrowers with perfect credit scores, there would be few homes selling. What you can do is improve upon your credit after bankruptcy, perhaps buying a secured credit card and always making on-time payments with it.
Waiting Period
If you file bankruptcy, it will stay on your credit report for 10 years. If you ever have to file again, it must be after 7 years. The good news is, the longer you wait, the more you build your credit, the better interest rate you'll get on your home. If you buy immediately after bankruptcy or foreclosure, you will pay much more. If you wait a few years, you have more options.
Bankruptcy can be hard on your credit, but you can buy a home or get a loan for a car again. You can pay more, but lenders still give loans to those with bad credit. If you want to buy a home, it's recommended you wait some time to rebuild your credit and get a reasonable interest rate.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
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