Will I Be Turned Down For A Mortgage Modification If I’ve Filed Bankruptcy?

Many people wonder about how filing for bankruptcy will affect their credit, and whether they will be able to get a loan or have other financial needs satisfied after a bankruptcy is over. The concern is legitimate, because money issues have a way of cropping up more than once in a lifetime. If you are considering filing for bankruptcy but have questions about your creditworthiness thereafter, or need to know what types of financial transactions will be likely after your case is over, we can give you the answers you seek.

For most people, offers of credit begin to pour in only a short while after their bankruptcy case is complete. Things like offers of credit for vehicle purchases, and even credit card offers are common. But what about getting a home loan, or better yet, modifying the one you already have? It is normal to wonder if you will be turned down for a mortgage modification if you have filed for bankruptcy, and in the majority of cases the answer is no. Many homeowners who have filed bankruptcy are still able to have their mortgage modified, here are some things to consider if this is your situation:

 

  • The amount of time that has passed since your bankruptcy will play a role. The longer it has been, the more likely you are to be approved for a mortgage modification.
  • You will be required to note the bankruptcy on your mortgage modification application.
  • If you reaffirmed the mortgage debt you seek to modify during your bankruptcy, your mortgage lender will look upon your application more favorably.
  • If you did not reaffirm the mortgage debt, the lender may be hesitant to entertain the application because technically the debt is no longer due. This road is a bit harder to travel, but with the assistance of a qualified attorney is not impossible.

If you have filed bankruptcy before and still need financial relief, there is help available. We understand that in life there are no certainties, and financial distress is not a one-time event. Modifying your mortgage even after a bankruptcy has been filed is a possibility, and is a good way to get the extra relief you need.

If you have questions about mortgage modifications, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.

 

 

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