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While bankruptcy can be stressful and frustrating, it is meant to help you in the long run.  Because of this, it is not impossible to refinance your mortgage after bankruptcy.  Depending on what type of bankruptcy you file for, you should be able to refinance fairly soon after your bankruptcy.

Chapter 7 bankruptcy generally ends within a few months, at which point you will be able to refinance your mortgage.  However, Chapter 13 bankruptcy tends to take much longer.  Chapter 13 bankruptcy can go on for years.  Regardless, you could refinance your mortgage if you make timely payments to the creditors for a period of 6-12 months.  To this end, you should make sure that you maintain steady finances.  Pay your bills and your debt payments on time, and attempt to rebuild your credit as soon as possible.

If you are interested in refinancing your home, you should get an expert’s opinion of the fair market value of your home.  Compare this value to the mortgage that you owe in order to calculate the ownership percentageIf this percentage is over 75%, it will be difficult for you to find a mortgage refinance loan.  Building up your cash reserves will look good on an application for a mortgage refinance loan.  This is because applicants with decent cash reserves seem more responsible and stable.

If you apply for a refinance within two years of your bankruptcy discharge, you should be prepared for a bumpy road.  Many companies will not offer you a refinance until you rebuild your credit, which can take several years.  However, it is not impossible to get a loan in the first few years following your bankruptcy.  If you follow these tips and are a responsible homeowner, you might be able to find a reasonably priced refinance loan after your bankruptcy is complete.  You can contact me here for further tips, given your personal situation.