Purchasing A Home After Bankruptcy

April 12, 2012 by  Filed under: Bankruptcy 

Going through the process of a bankruptcy can be an exhausting and disheartening experience. In spite of that, however, you can’t afford to wallow in misery if you want to begin the process of getting back on your feet. This is particularly true for those who have long dreamed of owning a home and fear that their bankruptcy may have put their dream out of reach.

Fortunately, there are proactive things that you can do to begin to put your financial house back in order to the point where you can buy a home for you and your family.

The very first thing that you should do is to begin to rebuild your credit rating. And to do this, you need a copy of your credit report. So, contact the three major credit reporting agencies and request a free copy of your credit report. If you have recently received your bankruptcy judgment, you may find items on the report that have since been dismissed. If so, you can ignore these. For the remaining items, put together a plan to pay off the remaining debts as quickly as you can.

Once you have your repayment plan in place, you want to apply for a secured credit card. Because of your bankruptcy, you will probably have to pay an annual fee for the privilege. In addition, the interest rate will be a lot more than you are used to paying. It doesn’t matter, however, as you only want to use this card to charge small amounts that you can repay in full by the next billing period. The process of making small charges and repaying them on schedule will help to rehabilitate your credit.

Follow the same type of focused repayment plan with your utility bills as well. Make it a point to pay your rent and all of your bills on schedule. And, until you get firmly back on your feet, avoid luxury utilities such as premium cable channels.

Finally, when you are ready to look for a home to buy, think outside of the box. One of the best ways to buy a home following a bankruptcy filing is to rent a home with an option to buy. At the current time, housing prices are down almost across the board. And, depending on where you live in the country, you will find many buyers who can’t sell their homes at the price they would like.

As a result, many of these buyers would be happy to provide a lease to buy agreement to those who are willing to pay the asked for amount in the event that they buy. This results in a win/win for every one and could easily put you in your dream home.

You can find additional information on bankruptcy related topics such as credit card after bankruptcy and chapter 7 bankruptcy information by visiting our website.

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