Approximately 2 million residents in the US have filed for bankruptcy between 2002 and 2003. If you have recently filed for Chapter 13 bankruptcy in the last 12 months, you are probably having difficulties getting credit approval, especially for a Bankruptcy mortgage. You may find a mortgage company that will work with you, but the mortgage rate will be a lot higher than the average mortgage rates.

Chapter 7 bankruptcy stays on your credit file for 10 years following the date that you are declared insolvent, and seven years for a Chapter 13 Bankruptcy. While many mortgage companies do not permit applicants with negative credit files, there are some FHA companies who can help with a mortgage loan after bankruptcy. This will vary with your last 12-24 month history on your credit file after the filing date and/or discharge date.

Most Bankruptcy Mortgage companies will require that you wait 12 months from the filing date for a Chapter 13 Refinance, and 24 months after discharge for a Chapter 7. You will need to find an FHA company that specializes in these types of loans. The right mortgage broker can help you find various lender who will work with your current situation. They will require you to have a reestablished credit history after your bankruptcy filing/discharge date. It's also important to review your credit report to make sure ALL the credit tradelines are being reported correctly. This maybe time consuming so it's important to apply immediately with a mortgage lender that can help you with your credit needs. Having mortgage lates during/after a Bankruptcy can have a detrimental effect on the underwriter's decision.

The most common mortgage for a bankruptcy is called an FHA Buyout. You're required to receive the Trustee's approval for this Chapter 13 refinance, and will need 12 months of timely payments. This FHA loan has helped out many borrowers to lower their overall monthly payment obligation.

Please visit our website for more Bankruptcy loan information.