Credit after bankruptcy ? a mortgage with seller financing | Mortgage ...

Articles by Carrie Reeder

After a bankruptcy approved, get a mortgage is possible. However, those who expect a higher mortgage rates. To avoid this common pitfall, many choose to delay buying a house, to the increase in their credit score. If you want to buy a house, there are other options available that can not be connected to high interest rates.

What is the seller of the financing? If you try a home loan after bankruptcy, it is useful to establish credit first. This can always be approved for a secured credit card or get an auto loan. This will increase your chances of getting approved for a mortgage at favorable prices. Of course, there?s always the possibility of seller financing. Also known as owner financing, this method is the new home ownership assistance includes payments to the seller, not a bank. In this way, the buyer did not try to front the effort to get approved for a mortgage. With seller financing, sets the person?s house to sell interest, conditions and payments. How do seller financing? When a home buyer and seller agree to seller financing, consult a real estate lawyer is essential. To ensure that no one is the end of the first case, the exact modalities of exercise, and a signed contract. Seller financing is ideal for independent and people with bad credit. Self-employed workers have a hard time proving their income. So it may be difficult for them to get traditional financing. On the same line of thinking, they may need time with bad credit to improve their credit score before applying for a traditional mortgage. With seller financing, will undertake to finance the home seller to the home of a certain period of time. The loan period for seller financing are much shorter than the traditional loan terms. On average, the seller?s house for five to seven years will be financed. At the end of the loan, the buyer is obligated to the seller of a balloon payment. This allows the home buyer sufficient time to rebuild their credit and qualify for a loan with a mortgage lender. At the conclusion of the financing agreement, the buyer, a lump sum, to fulfill the contract. The balloon payment is financed by a traditional mortgage lender. Thus, the original seller the money comes home, and the buyer begins to make payments to the new lender.

Source: http://www.port41.com/credit-after-bankruptcy-a-mortgage-with-seller-financing.html

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