Sometimes a person finds himself in a situation where he cannot pay his debt. In such cases, filing for bankruptcy is the only option for them. This gave them one more chance to start a new financial life but made it very difficult for 5-10 years after the declaration.
Getting a mortgage refinanced after bankruptcy is not easy. However, if you follow certain steps, you can still get a lot of business regardless of whether you are declared bankrupt under Chapter 7 or Chapter 13. Your FICO will indeed be very low over the next few years, but you can still find a lender. If you are looking for a law firm in Vaughan then visit https://bracelaw.ca/.
You just need to learn where and how to find this lender. This shouldn't be too difficult for you as refinancing is not a very risky endeavor for lenders. Here are some important points to keep in mind as you carefully consider them.
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Prepay your current mortgage
When considering refinancing a mortgage after bankruptcy, you need to do the calculations carefully. For example, you need to know exactly how much your current lender is charging you a prepayment fee. However, not all lenders charge an upfront payment fee. You may still want to apply for a refinance even though you have to pay an early payment fee. However, you need to take these costs into account.
There are several fees that you must pay
Not just prepaid fees. If you want to refinance your mortgage after bankruptcy, you may have to pay several other costs, such as B. Legal fees, mortgage application fees, loan fees, mortgage insurance fees, and new data search fees. Therefore, it is highly recommended that you shell out some cash to cover these costs.