If you are in a position where you are thinking of filing bankruptcy but want to eventually buy a house, it is possible! Although a bankruptcy will reduce your credit score by 200+ points, the damage is not ever lasting. After your bankruptcy you'll want to focus on achieving a perfect payment history with three or more credit references. Additionally, you will typically need to wait two years from the discharge or dismissal of the bankruptcy in order to be considered for a mortgage loan.
It always helps to get letters from anyone with whom you've been paying bills on time with (telephone, or other utilities and insurance providers, for example). You will never have too many good reports of your improved financial responsibility, especially after a bankruptcy. Naturally, its a good idea to keep your job, and ideally the same job from the time of your bankruptcy. Remember, you're trying to show case your consistency and reliability as much as possible.
As your credit lines begin to come back, be careful not to use too much of whats available. Keeping the charges you make low will be a strong signal to lenders that you mean business.
One warning I always issue to people is to make sure whatever was causing the problems which led you to consider the bankruptcy, in the first place, have been fully resolved.
Bankruptcy is a serious event. You will be closing the windows on almost any credit for a time, not to mentions the financial mark it leaves will remain on your credit report for 10 years. Recurring financial problems become harder to deal with once you have filed bankruptcy.
Once you have made all the appropriate post-bankruptcy steps then you are ready to start your search, keep the following tips in mind.
Be very skeptical of sub-prime lenders that will charge insane amounts for processing fees, pre-payment and other fees. Most of the time I say, if it sounds excessive or unfair, it probably is.
Make sure you obtain 3 or more quotes from different loan officers. This will help you find the best deal.
Do not give up, just get creative. If you happen to need money for a down payment, think about borrowing it from a friend or relative. After closing, sometimes you can take a second or third mortgage up to the value of the house to repay. (Disclose any creative thoughts to your loan officer)
First-time-buyers. Usually there are sate-operated first-time buyers programs that can help you get started. A short web search can work wonders.
Make sure you've exhausted all other options short of bankruptcy before you take this step. Having creditors harassing you can magnify problems that you might normally handle without considering a major bail-out.
In conclusion, examine your credit history and scores for errors and opportunities. Negotiating toward a clean credit report has prevented many from filing for bankruptcy. Whatever you decide, take action today andquot; you will be excited you did!

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