Bankruptcy And Bad Credit Issues No Longer Means No Mortgage

Bankruptcy (Photo credit: phil dokas)In the past, traditional mortgage lenders have automatically rejected people who had declared personal bankruptcy. Many potential home-buyers felt they must wait at least seven to 10 years after a bankruptcy to be eligible to become homeowners. This is a common misconception.
While some people declaring bankruptcy have had trouble managing their money, a large number of those declaring have simply experienced unfortunate events. Australians are filing bankruptcy at record-high levels over the last five years. The rise in petrol price and the recent increase in interest rates won't help either.
There are some ominous signs out there...
Though a bankruptcy is certainly a blemish on a credit report, it does not necessarily disqualify a borrower. Recognising that sometimes bad things happen to good people, some select loan officers are becoming more willing to take a calculated risk.
Some lenders use a securing system to determine whether potential buyers are a worthwhile risk. Unfortunately, bankruptcy gives a low rating. However, select lenders are beginning to look beyond the rating and look at the individuals in need.
Instead of waiting two or four years after being discharged from bankruptcy, some mortgage professionals are willing to give a home loan much sooner. Those who have declared bankruptcy liquidation may be eligible for a loan one year after discharge, and those who are in a Part IX debt agreement could also be able to get a mortgage.
Another common misconception is that a previous bankruptcy on your credit report will require you to have a large down payment and pay extremely high interest rates. There are currently programs available with as little as 5 percent down with very attractive rates.
Some lenders are even prequalifying buyers for a loan, saving time and making the home-buying experience easier and more efficient. When a buyer prequalifies they will have the advantage of greater negotiating power.
No matter what the situation, select mortgage professionals have a program that will work for the buyer with a bankruptcy history. If a buyer cannot get approved, there are customized plans that can re-establish credit to help the buyer become mortgage-ready, ensuring home-ownership in the future.
Because of new options, bankruptcy no longer needs to stand in the way of getting a home loan. With the help of more creative lenders, those who have experienced financial difficulty will have an easier time getting a mortgage.
To your ongoing financial success,
Julian Thornton
Julian Thornton is the bad credit and mortgage reduction expert with a special interest in improving financial literacy and financial independence for the average person on the street. He is the founding president of The International Family Financial Literacy Association.

Bad Credit Mortgage Traps

Image via WikipediaMake no mistake. It's a real jungle out there in the world of bad credit, and when you are suffering from financial problems you're fair game to some. Sounds scary right? It needn't be if you familiarise yourself with the surrounds and get to know the traps, so you can see them from a mile away and avoid them like the plague!
The Traps and Tips for Avoiding Them
Bad credit mortgages are certainly an attainable possibility. Nobody knows that better than credible bad credit experts, who meet so many people each day, all suffering from a range of acute financial problems. In the jungle, they're a trusted guide. The bad credit experts who are good at what they do get to know their clients, and show them how they can get a mortgage that works for them. They keep their clients safe from harm. That's great comfort no doubt, however there are traps in the jungle of bad credit which you need to steer clear of if you're venturing into uncharted bad credit territory, and here they are:
oMissing a payment: Sure, it's possible to have tight times, however make sure you don't miss a payment. This is especially important in the first two years of your bad credit loan - this is what you could call a probationary period. Once you get through it, you benefit from a lower interest rate. If you miss a payment during probation, your two year probationary period starts again. Avoid this trap! A credible bad credit mortgage expert will provide you with a plan, so you can avoid tight times.
oOver borrowing: This can happen with bad credit loans believe it or not, and normally it is attributed to a bad credit mortgage specialist who perhaps isn't as well-versed and experienced in the area as they should be. Any good bad credit specialist will spend time, carefully assessing your financial situation to determine what you can and cannot afford. Choose a reputable bad credit mortgage expert to avoid this trap!
oPaying too high interest: As you can guess, inexperienced, less-than-credible bad credit specialists will cut corners and miss the important details of your financial situation - the details that determine what you can and cannot afford. Some of them will cut corners talking to lenders as well, and take the first offer, without comparing it with others. As a result people may get a high interest loan they cannot afford. Avoid this trap by working with an experienced, reputable bad credit mortgage expert.
oBroker that doesn't check your credit file: Your credit file accounts for all loan applications that have been lodged on your behalf, and will advise of approvals and rejections. A good broker will check this, to make sure they are familiar with your situation and the applications that have been lodged on your behalf. A broker who doesn't check could do damage to your credit file, because there may be knock backs (again) if the broker lodges an application with a lender a broker may have already approached on your behalf. Again, avoid this trap by choosing a reputable bad credit mortgage expert.
oPanicking and Shopping Around: Multiple loan applications on your credit file raises the alarm bells, because it looks like you may have a problem securing credit. Avoid this by choosing a bad credit mortgage expert who knows what they are doing!
oBad credit brokers who exploit people: Beware - they are out there! Choose your bad credit broker carefully and only work with ones that are credible who have helped many people time and time again.
Find Your Guide Now!
If you're wandering through the jungle of bad credit, you need a guide, so you can find your way out to greener pastures! Reputable bad credit mortgage experts can help you find your path to good credit, a mortgage and financial security today! Do something about your situation, because every minute alone in the jungle maximises your chances of being bitten by the rogue lions!
© Julian Thornton, Designer Mortgage Solutions Pty Ltd, 2006.
Julian Thornton is a Melbourne-based mortgage specialist who owns and operates the highly successful Designer Mortgage Solutions Pty Ltd. Although specializing in the field of bad credit mortgages and debt elimination, Julian can help anybody into their own home and prepare them for financial success. Julian can be contacted by email at julian

Securing A Mortgage - Inside Secrets To Securing A Mortgage When You Have A Judgement

Julian Beever (Photo credit: FePe55)Unless you are working in the area of bad credit and finance or have a judgement, chances are you don't know what one is. A judgement is a court order which instructs you to pay a certain amount of money to a creditor. Each judgement remains on your Credit File for five years, and if you have a judgement, you are considered to be a person with bad credit. This means that you can forget about the banks or most mortgage brokers if you are seeking a home loan. Hope is at hand however, and a bad credit mortgage specialist can work with you to secure the home loan that is right for your situation.
Do you have a Judgement?
If you have a judgement, you will know about it because it is a court order. What you may not know though is if the judgement is still on your Credit File. The best way to find out if you have an active judgement on your file is to obtain a copy of it. Baycorp Advantage is the company that manage and store Credit Files in Australia, and you can find out how you can obtain a copy of your file by visiting http://www.mycreditfile.com.au. If you discover that you actually have a judgement, don't panic! It's just another financial problem that bad credit mortgage experts can help you to overcome, so you can get into your own home and on the road to financial abundance.
Managing your Judgements
It's never nice to receive a court order demanding you to pay money to a creditor. Most people will shudder when they hear their name and 'court' mentioned in the same sentence. As a bad credit mortgage expert, I can confidently say that even with a judgement on your Credit File, you can secure a home loan. By choosing to do business with an experienced bad credit mortgage specialist, you'll not only get a good home loan, but you will also be taught how to implement good money management practices. This determines the judgement management approach. The best way to manage your judgements is to pay them. View a judgement as a debt that you need to clear, and do so within five years, because that is how long your judgements will remain on your Credit File. Commit to paying off your judgements, and you are not only helping yourself to secure a home loan. You are also teaching yourself good money management practices, and that will equip you for a financially secure future.
A Judgement isn't the End of the World: Get Help and Start Managing Them
As you already know, bad credit isn't the end of the world, and neither are judgements. Look at a judgement as an opportunity - a catalyst for positive financial change. Commit to paying your judgements and talk to a proficient bad credit mortgage specialist about ways you can get into your own home sooner - even with a judgement on your Credit File.
It's Nothing to be Ashamed About
Bad credit is rapidly on the rise in Australia, so it will be a comfort for you to know that you are far from being alone. As a bad credit mortgage specialist, I believe individuals aren't to blame for their bad credit habits. After all, the movers and shakers of banking and finance are constantly bombarding us with messages to, "buy now, pay later" - sometimes even five years later, with the most recent interest-free offers clogging up the airwaves, not to mention our mailboxes. If people are educated on good money management and directed accordingly, I guarantee there would be less people struggling with bad credit issues. If you're struggling now with judgements or any other bad credit issues, it's time to turn this situation into an opportunity for positive change. Talk to a bad credit mortgage expert who is good at what they do and see just how successful you can be financially - regardless of your situation - now!
Julian Thornton is a Melbourne, Australia-based mortgage and debt analyst specialist. Julian specializes in the field of bad credit mortgages and personal money management coaching. Julian can help literally anybody into their own home and prepare them for financial success. If you need financial relief and desire control of you personal finances then Julian can help you. He is the author of "How To Get A Mortgage When No-one Wants To Give You One!"
www.bad-credit-loan-expert.com
© Julian Thornton, Designer Mortgage Solutions Pty Ltd, 2006.
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