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How to Refinance a Home After Bankruptcy

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From Quick Guide: Refinance after Bankruptcy

Summary: In order to refinance a home after bankruptcy, most lenders want to see a minimum of 24 months since the discharge of the bankruptcy. Find out how the rest of the financing process is no different than before the bankruptcy with help from a financial services manager in this free video on refinancing a home after bankruptcy.

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By Matthew McKillen
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Matthew McKillen brings 21 years of industry experience in arranging loans for his clients. He has worked in financial services senior management positions in mortgage banking...read more

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Video Transcript

"Well, when you're refinancing a house after bankruptcy there's a little bit more involved than your standard refinance. Based on the current credit guidelines, most lenders want to see a minimum of twenty four months since the discharge of the bankruptcy. Now, that's basically for a chapter seven. If you were in a chapter thirteen, what's considered a wage earner plan, where they had a plan to pay off the bankruptcy over a period of three to five years, they'll actually allow you to refinance the chapter thirteen and pay it off after only twelve months and you can prove that you've made your payments to the court on time. So as a whole, when you refinance your home after bankruptcy, generally, if it's a chapter seven, which most people file, they want to see that it's been discharged for a minimum of twenty four months. Then, it's the same process. They appraise the house. They make sure that you have the ability to repay the new loan, and if there's any option for cash out you can use it to consolidate debts. So, it's basically the same. It's just you have to wait for twenty four months before you can refinance your home after bankruptcy."

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