While filing for bankruptcy protection can feel like the end, the reality is that your life is not over. Rather than dwelling on the mistakes of the past, the best thing you can do is learn from them and then move on. Moving on can be hard, especially since you are likely feeling let down at the way your life has turned out. But remember, you only lose at the game of life if you quit!
The most important thing for you to do now is to set some new goals for yourself. One of these may be to own a home again. While it is not as easy as it once was, if you start now you can get a mortgage loan after bankruptcy.
You should understand that this is not something that is going to happen quickly. Thanks to the collapse of the Sub-prime mortgage market, unless a new alternative becomes available you will need to qualify for an FHA mortgage. While the FHA guidelines allow for scores below 620, loan approval is up to the individual lenders. Because of new rules that hold the lenders more accountable for the loans they underwrite, most of them have tightened their guidelines. This means you are going to need to get your credit score up to 620 for most lenders to consider approving your loan.
If your bankruptcy did not include a foreclosure, you will be eligible for loan approval in 24 months from the date of discharge. If you did have a foreclosure, you will need to wait for 36 months.
Additionally, you will need to have accounts that have been paid on time to show your credibility. If you included all of your accounts in your bankruptcy, then you will need to get to work immediately to establish new credit. Most guidelines require that you have at least three open accounts that have a history. While alternative trade lines, like utility bills, are accepted, they will not be enough to get your credit score back up to 620. Fast credit repair is not what you are working on. Slow and steady wins the race!
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