Mortgage Loans During and After Bankruptcy
Navigating mortgage options after filing for bankruptcy can feel overwhelming, but it’s entirely possible to secure a home loan that fits your needs. At Cardinal Financial, we specialize in helping homeowners like you refinance or purchase a residential property during or after bankruptcy. With years of experience, our team excels in handling complex cases that few lenders are equipped to manage effectively. We focus on two main types of bankruptcy, Chapter 7 and Chapter 13 and offer flexible solutions tailored to your situation.
Whether you’re looking to lower your interest rate, consolidate debt, or access cash for home improvements, we’re here to guide you through the process. Let’s break down how we can assist with each type of bankruptcy.
Chapter 13 Bankruptcy and Mortgage Loans
Chapter 13 bankruptcy, known as a “wage earner’s plan,” allows you to reorganize debts into a manageable repayment plan over 3-5 years. This is our primary area of expertise, and we offer some of the most innovative solutions in the industry:
- Immediate Post-Discharge Options: We can approve loans as soon as 1 day after your Chapter 13 discharge, making it easier to refinance or buy a new home without unnecessary delays.
- Loans During Active Bankruptcy: If you’re still in your Chapter 13 plan, we can help you pay off the remaining balance through the mortgage. This involves close coordination with your bankruptcy attorney and the court trustee to handle all legal and financial details seamlessly.
Few lenders are willing or able to navigate the intricacies of active Chapter 13 cases, but our specialized team does it every day - and we do it well.
Chapter 7 Bankruptcy and Mortgage Loans
Chapter 7 bankruptcy, often called “liquidation bankruptcy,” involves discharging most unsecured debts without requiring monthly payments toward the bankruptcy itself. If you’ve gone through Chapter 7, we can help you qualify for a mortgage under the following guidelines:
- Standard Waiting Period: Your bankruptcy must be discharged for at least 2 years before applying for most conventional or government-backed loans.
- Flexible Options for Quicker Access: In certain circumstances, we can explore options as soon as 1 year after discharge, depending on factors like your credit recovery, income stability, and overall financial profile.
Our experts will review your case to determine if you qualify for these accelerated timelines, ensuring you get back on track with homeownership sooner.
Additional Benefits: Cash-Out Options for Your Future
In many scenarios, our mortgage solutions go beyond just refinancing or purchasing. We can often provide extra cash through cash-out refinances, giving you funds for:
- Home Improvements: Upgrade your property to increase its value and comfort.
- Debt Consolidation: Pay off high-interest debts to improve your financial health.
- Financial Cushion: Build a safety net for unexpected expenses or peace of mind.
These options are designed to empower you during a challenging time, helping you rebuild stronger than before.