Homebase Mortgages

How to Get a HELOC after Bankruptcy

\"homeIf you want to get a home equity line of credit after bankruptcy you’re going have to fight on your hands. The first thing you want to deal is check your credit report, here you’ll be able to a figure out how much debt you have, what bad accounts you have to handle, and any errors corrected. Instead of worrying about chasing bad lenders, you can just pay off your debts and move on with your life. Here we’re going to talk about how you can get HELOC after bankruptcy. Let’s get started, and see what a new line of credit can do for you.

What is a HELOC?

A home equity line of credit is a credit card that you use but instead of running off your credit score, lines off the equity in your home. Even if you have bad credit you still have equity, so you build the bank will not borrow the money you need. But, if you happen to have bad credit you’ll end up paying more in interest – that’s just how it goes. it’s important to understand how much equity you have in your home. You can find this information on your monthly mortgage statements, or by calling your lender.

Home equity lines of credit should only be used wisely. The last thing you want to do is waste your equity on something that is not worthwhile. It’s important to sit down and really think about what you want to use your equity for. You’ve worked hard for years to build up a sign of equity you don’t want to throw all that money and hard work away.

What is Bankruptcy?

Bankruptcy just means you\’re unable to pay your debts. It’s a legal status so you\’ll have to go to court to declare bankruptcy, but this also means that you can’t repay your creditors. You\’re still going to have to pay what you can to settle the dispute. Bankruptcy can seriously impact your credit score, but you can still be rebuild in time – don’t try to go too fast with financing right after a bankruptcy, make sure that you’re in a good place before you start seeking financing again.

A Bankruptcy Can Drop Your Credit Score 100 Points

When you declare bankruptcy, you can lose as much as 100 points of your credit score. Depending on where you started with your credit, this can impact your financial future in a big way! It’s important to avoid declaring bankruptcy as much as possible. In the end, you will have to work with your lender to find a solution.

Work with a Co-signer

Working with a co-signer can help you boost your credit and the available line of credit that a lender is willing to give you. If you default, the co-signer will be responsible for the debt.

This is why it’s so important to know that you’re ready to borrow even if you do have a substantial amount of equity. Work with a financial planner or mortgage broker to make sure you’re ready.

To learn more about our great rates on home equity lines of credit, click here!

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