home mortgage bankruptcy

Exclusive summary about Home Mortgage Bankruptcy by Simon Volkov

The home mortgage bankruptcy bill is surrounded in controversy because it modified the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) which took effect in 2005.

When borrowers petition the bankruptcy court for Chapter 13 protection, their primary goal is generally to save their home from foreclosure. Since Chapter 13 bankruptcy offers debtors financial relief through restructuring of debt and an extended repayment plan, courts can control the terms to ensure both the Borrower and lender are protected. In the event the debtor fails out of bankruptcy, creditors can seek protection through the court and request the bankruptcy be dismissed.

A judge reviews the events which caused the debtor to fail out of bankruptcy. Chapter 7 bankruptcy requires debtors to liquidate assets and use the proceeds to repay creditors.

Refinancing Your Home Mortgage after a Bankruptcy

Exclusive summary about Home Mortgage Bankruptcy by Maria Ny

You probably will pay a higher interest rate under a "bad credit" loan with a sub-prime lender. But, you could still save money by refinancing your first mortgage or second mortgage home loan. The following tips will help you find the best possible refinance mortgage loan options.

1. Right after your bankruptcy is discharged, start preparing to refinance your first or 2nd mortgage loan by establishing good payment history.

2. Get your credit reports from all three credit bureaus--Experian, Equifax and TransUnion and make sure your bankruptcy accounts are accurately reported.

3. Start researching mortgage lenders. You should get a much better interest rate and loan package.

4. Know your legal rights. The Federal Reserve Board states that according to federal law, you have three business days after signing the loan papers to cancel the deal for any reason, without penalty.

5. Once you've refinanced your first or second home loan or debt consolidation loan, and you've kept up your payments on it, and all your other bills, shop for a new loan in about two years.