Category: Bankruptcy

Getting A Mortgage After Bankruptcy

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Many consider bankruptcy as a nightmare, but it doesn’t have to be with a formidable plan. Nevertheless, it is a horrendous undertaking that one has to take when debt is becoming intense or overwhelming. Taking such drastic action will halt activities such as lawsuits and repossession.

If you’re comfortable with having this mark on your credit score for seven to ten years, not being able to seek or obtain a loan, then go ahead. If you’ve filed for bankruptcy in the past and you’re considering getting a mortgage, this article will no doubt educate you on what you need to know.

Impact Of Bankruptcy On The Ability To Get A Mortgage

Although the impact of bankruptcy can lessen with time, it limits your ability to obtain loans. It is possible to get a mortgage after bankruptcy, but it is a challenging process. Before a lender can give you the attention you deserve, the default has to be discharged.

Most lenders will take a look at your credit score to determine your creditworthiness. So, you must check your credit score report before you apply for a mortgage. In your credit score report, ensure there are no mistakes by correcting incorrect or outdated information.

If there is an error in your credit score report, do contact your credit agency to correct or update your information. When applying, your lender is most likely to ask you a few questions regarding your bankruptcy. Take note that the questions are merely to understand your financial capacity to stick to the agreement.

Mortgage Loans To Consider After Bankruptcy

After filing for bankruptcy, you need to apply for a mortgage with less restriction. There are many mortgages to consider, and they have their unique requirement for bankruptcy filers.

Here are a few mortgages that are less stringent and more comfortable to acquire.

  1. FHA Loans

The federal government manages this type of loan and allows you to buy a house with a down payment as little as 3.5% of the purchase price. The only downside with this mortgage is that you will have to pay for mortgage insurance, thereby leading to a high monthly payment.

  • USDA Loans

If you’ve found a home in a rural area, you should consider applying for this mortgage. The U.S Department of Agriculture is designed to meet a specific income requirement. If you’re viewing this alternative, you might not even need a down payment and it comes with a low-interest rate.

  • VA Loans

If you’re a veteran or perhaps, currently working with the military, you might be qualified for a Department of Veterans Affairs (VA) loan. This type of mortgage doesn’t require any down payment and the interest rate is ridiculously low. However, you will need to pay a funding fee, which is the percentage of your home price.

Conclusion

Applying for a mortgage after bankruptcy can seem pretty challenging. However, applying for the right mortgage will make a difference, as the requirement becomes lesser than a conventional mortgage. If you’re yet to start applying for a mortgage, perhaps you should consider the options in this article

Common Commercial Real Estate Legal Issues

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Commercial real estate deals need extensive experience to pull off, which is why you might need to learn about some potential legal issues that might spring up.

Aside from the financial aspect, which is sometimes an issue, there are numerous other legal issues that you might encounter during a commercial real estate deal.

These legal issues can put you at risk, costing you hundreds of thousands if not mitigated as soon as possible. In this article, you’ll learn about these common issues. That way, you will know of a way to navigate around them.

  1. Assumption Of Liability

When you purchase a property, you need to ensure you’re not liable to any legal violation or damages caused by the previous tenant. Failing to do this might lead to you being responsible for any damage. Not only will you be accountable for removing the threat, but you will also need to restore the property to a safe level.

When you acquire a property, ensure that it is insured in case of the inevitable or uncertainty.  By having insurance coverage, you cut down on the issues which you might have to face.

  • Liens On The Title

Before concluding any deal, you must ensure that a title search is done. It is done to ensure there are no liens on the property, which might affect your inability to sell the property. 

By working with a reliable and competent lawyer, they will conduct thorough research to ensure no liens on the property. Although the title search is pretty expensive, it will save you from many headaches in the long run.

  • Reps And Warranties

In the real estate world, representations are factual, while promises are indemnity for false statements. Ideally, most real estate buyers will want a full contract of representatives and warranties to verify their income, expenses, and the general condition of the house.

Most buyers of real estate might want a contract with few reps and warranties. Take note that every deal is different; that is why working with a reliable real estate attorney will serve in your best interest.

  • Zoning And Land Use

Most real estate buyers often run into this issue, and that is because proper research wasn’t done. It isn’t always wise to rush into a deal, but rather take your time to evade most zoning and land-use problems. Your attorney will help you decide if the land can be used in ways you intend to use it. Also, he will be in charge of getting the local permit for your business or new project.

  • Defects In Title

Although deeds are meant to show who owns the land, sometimes they aren’t recorded, listed, or perhaps match the proposed land. It might be impossible to avoid most of these commercial real estate legal issues, but taking your time before concluding a deal will save you a lot of stress.

Conclusion

Every situation or contract is different, so you need to trust your agreement the same. By working with a competent real estate lawyer, you will avoid most of these real estate legal issues that might spring up.

How Can Filing For Bankruptcy Affect You?

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Filing for bankruptcy is an overwhelming undertaking that can be difficult to understand. It is important to be informed of what the process looks like, and what steps can be taken to be successful after restarting your financial life.

Below is a description of each type of bankruptcy:

Chapter 7 bankruptcy: Also known as “liquidation bankruptcy”, Chapter 7 bankruptcy is the process of filing a chapter 7, which requires you to give up all non-exempt assets to your bankruptcy trustee. Your trustee sells your assets and uses the proceeds to pay off your debts. If you are eligible for chapter 7 bankruptcy, liquidating assets will help you rise from the financial crisis you are facing.

Chapter 13 bankruptcy: Also known as “reorganization bankruptcy”, Chapter 13 bankruptcy allows you to keep your property. This is not allowed in Chapter 7 bankruptcy, but with keeping property also comes the requirement of making a repayment plan. Your repayment plan will precisely lay out how you will pay your creditors. Avoiding foreclosure or repossession is usually the primary reason for filing a chapter 13.

Following these main steps will guide you onto a smooth path to financial stability:

Contact a bankruptcy law firm– In order to be provided with accurate and detailed legal support, you should contact a bankruptcy law firm for assistance through the bankruptcy process. You will be guided through the process by your bankruptcy lawyer.

Deciding on which type of bankruptcy you should file for– Your bankruptcy lawyer will assist you in deciding whether you should file for a chapter 7 or chapter 13 bankruptcy. Between these two different types of bankruptcies, one may be more beneficial over another depending on each individual.

Having the best bankruptcy lawyer for you is essential in determining what bankruptcy you should file for.

If you are considering to file for bankruptcy in the Chicagoland Area, Chang Legal will provide you the best legal support, with the assistance of our leading expert legal team. If you want to receive the chance of having a fresh financial life, contact us today.

 

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