The dream of owning a home is something that many people have in Smith County. But for some people, the dream may feel like it never will come true. Sometimes people hit a point in their lives where their only option is bankruptcy. This does not make them bad people; it just means that they have had to go through bad situations. If a person has to declare bankruptcy it doesn’t mean the end to their homeowning dreams.
No one ever expects they will have to declare bankruptcy, but certain unexpected events can happen that can force a person to have to make that choice. Just one serious accident or medical diagnosis can propel a family into thousands of dollars of unexpected bills without a way out. Bankruptcy is there to help these people get out from under their debt and start a new life. If a family has gone through the bankruptcy process, they should know that a bankruptcy doesn’t mean they won’t be able to purchase a house.
Before a person can buy a house the bankruptcy needs to be discharged. Once it has been discharged by the courts then a person should keep an eye on their credit report. It is important to make sure the credit report does not show debts that have been repaid or discharged. They should also work on rebuilding their credit. Two ways to rebuild credit are to obtain a secured credit card and installment loans. A person must make sure that they don’t fall behind on payments. Typically, a person should wait at least two years after declaring bankruptcy before qualifying for a mortgage loan. This can give a person more time to prove their credit worthiness and obtain a better mortgage rate.
With some careful planning a person should be able to purchase a home after bankruptcy. Bankruptcy is a reality for many Smith County residents but it doesn’t have to affect their lives forever.