Many consumers considering bankruptcy in today's still-uncertain economic environment sometimes question whether their upcoming Chapter 7 or Chapter 13 filings would ultimately condemn them to a lifetime of mortgage lender rejection. Sris law experienced bankrupty attorney near me in Virginia, and has received this inquiry frequently. Sadly, despite his expertise, he too is concerned about what the future of mortgages may bring for people who are now declaring bankruptcy.
Lenders back then were relatively lax with their standards, offering relatively large sums of money to those who were willing to stretch their budgets as far as possible to make those high monthly payments in exchange for larger properties, even though a salary of some sort was undoubtedly necessary to qualify for a mortgage.
Various Situations
When applying for a mortgage, it used to be as simple as completing the appropriate paperwork, providing evidence of a modest income, and waiting for the approval to inevitably arrive. These days, however, things are different. In actuality, it's more difficult than ever to obtain a mortgage nowadays. Anyone seeking a mortgage will have to work harder than ever to establish his creditworthiness in light of recent changes and trends in the housing market.
The contemporary mortgage sector is considerably different, mostly as a result of the recent, severe housing bubble crash. Today, a person must demonstrate not only the appropriate level of income but also the appropriate level of creditworthiness in order to be approved for a mortgage. In fact, to keep up with the times, real estate brokers often insist that their customers pre-qualify for mortgages before showing them houses. This saves the clients' time.
In all honesty, foreclosure is a greater issue now than it has ever been. Too many individuals around the nation are losing their homes as a consequence of going over their budgets, being laid off, or a combination of the two. I don't believe that all of the responsibility for the problems affecting foreclosed homes. After all, it was the banks who disbursed loans to borrowers that were more than they could reasonably have repaid, leaving individuals impacted by the weak state of the economy to pick up the pieces on their own.
future eligibility for mortgages
There is no way to predict what the future may bring for people who are forced to file for bankruptcy. But I don't want to give my customers false hope by telling them that acquiring a mortgage in the future won't be an issue if they declare bankruptcy. In actuality, due to tougher lending standards, people who have never filed for bankruptcy (or even come close) are currently being rejected mortgages. Nowadays, it's difficult to predict how long it will take someone who files for bankruptcy to repair his credit - and his reputation - in the eyes of the public, whereas in prior years, a person who filed for bankruptcy could theoretically end up qualifying for a mortgage just 24 months later.
However, I believe that persons seeking bankruptcy protection need not give up hope about their ability to obtain a mortgage in the future. A person who declares bankruptcy now but works to repair his credit may later have no trouble obtaining a mortgage, especially if the economy manages to recover. However, there is a danger that declaring bankruptcy now may affect a person's prospects of getting a loan in the future if the housing market weakens more and the nation's economic situation doesn't improve.
According to my experience, you shouldn't worry about whether filing chapter 7 bankruptcy in virginia would keep you from finally obtaining a loan if you are contemplating it because you are unable to pay your bills. Anyone in this kind of position can only hope for the best as it is hard to foretell the future. Instead, they should follow their lawyer's recommendations, work on restoring their credit, and follow their attorney's instructions.
Only informative in nature, this piece. You shouldn't act on the material in this article without first consulting legal advice since it shouldn't be taken as a legal opinion on any particular facts or circumstances. An attorney-client relationship is not established by the publishing of this article or your receipt of it. to speak with a bankruptcy lawyer in order to better understand their choices. People can utilise the period before declaring bankruptcy to save as much money as they can, which they can then use to pay off future bills and obligations, with the assistance of a respected SRIS PC — 888-437-7747 attorney.
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