How to buy a house even if you are bankrupt?

Stan October 1, 2014 0
How to buy a house even if you are bankrupt?

Whenever a person applies for a loan, it is the general practice of the lender to gather as much details as possible, relating to the borrower, such as his place of residence, his employment with salary, his credit-worthiness and his monthly budgeted cash inflow and outgo. If he finds that you are bankrupt, possibilities of a mortgage loan being granted to you may be remote. However, there is no need for you to lose heart. You will still be able to get a mortgage loan to buy a house; you may have to wait till such time you are able to improve your credit at worthiness.

You should remember one thing. You should not go in for a loan just at the time of filing bankruptcy petition or immediately after you have cleared your debts. If you go for a mortgage loan during these periods, you will not succeed. Even then, there is a way out. You should get hold of one of your relatives or friends to help you by co-signing the loan application. If, on the other hand, you are prepared to wait, it is all the more good; the waiting period may not be more than two years, from the date of your bankruptcy discharge. Then you can rest assured of getting a mortgage loan; there will be no problems at all! Or, as already said, you should take efforts to improve your credit.

Though you have filed your bankruptcy petition, you still toy with the idea of buying a house. What you will have to do then? You should make an immediate beginning to save considerably amount of money, on a regular basis. This is suggested because you may have to pay quite a good amount of money as down payment when you go for purchase of a house. If you go for an old house or a house needing repairs, you will be able to get it at a somewhat low price. This you should try to pay in cash. Even if you do not have the full cash with you, there will be a shortfall of only a small sum which you can try to get from your friends. If even this is not possible, the only way out is to request one of your friends to get a mortgage for you with which you can buy the house.

There is one more option available and you could very well consider it. It is known as ‘renting to own the house’ option. You just visit some of the web sites; you will find many offers relating to this option. You can select one of the offers and propose to make a deposit of certain amount of money towards the cost of the house you are desirous of buying. It does not matter who is the owner of the house. You have to come to come to an agreement in respect of the total cost of the house at which you will buy. Once this is agreed, you will commence payment of monthly rents to the owner. As and when there is an improvement in your credit rating, you can apply for a mortgage and you will get it. When you do this, the owner will sell the house to you, at the originally decided price. Whatever amount you have paid towards rent, will be treated as down payment.

Besides these options, there is another way out to buy a house. There are house-owners who are willing to provide the necessary cash to the prospective buyers. They are averse to go to banks or mortgage companies. If you are successful in clinching a deal with one such house-owner, you can feel relieved. You will have to only make regular monthly payments, as agreed, and after the full value of the house has been paid, he will execute the sale deed.

Leave A Response »