Following a bankruptcy, refinancing a mortgage can be a tough thing to do. Mortgage lenders and banks might be able to help you, but some options will not be so helpful. Homeowners need to figure out which bankruptcy refinancing option is best for them. Many mortgage lenders and banks refinancing programs are very different from each other, and it is up to you to find the best one for your situation.

If you are lucky enough to have a mortgage lender or bank who is willing to work with you, it is a good start. However, always be aware of hidden fees and costs, regardless of who you use. Sometimes, mortgage refinancing with a particular lender or loan option is not a good choice at all. If you feel like the loan you are being offered is being pushed onto you, you may be best off just walking away and finding another lender or bank. This is a good indication that the potential lender or bank is in it for pure profit, and not very willing to help you. They know that you have a bankruptcy in the past, and are trying to leverage it against you. Do not be pushed around. A mortgage is a major, expensive, long term commitment, and following a bankruptcy it is critical that a homeowner finds a good lender or bank to work with.

Always remember that you are the customer, and the homeowner. Although you need help, this is their job. Especially these days, there are plenty of mortgage lenders and banks who are more than happy to help you, regardless of your financial situation. For every bad lender there at least 2 good ones, find the best one for your situation.

When you have found a lender or bank you like, carefully review the options you have. Always take the long term into consideration when planning. A lot of people see some programs that are “No Money Down” or “Low Cost” refinancing options. Many of these programs make up for the closing costs and fees with long term pitfalls like balloon payments, or rising interest rates. While spending as little as possible on mortgage refinancing may seem enticing, do not fall for it. Many homeowners only think about the short term, and neglect the future. This is a bad thing to do and will lead to more troubles down the road. Make sure that the new payments will be affordable, even if there little bumps. Also, do not plan your budget without setting money aside for yourselves. Many homeowners, especially after a bankruptcy, set unrealistic budgets which allow no money for real world living expenses. Do not make this mistake and set an accurate budget for yourself.

There are good programs out there for homeowners who want to refinance with a bankruptcy. However, they need to be looked for, researched, and found by you. Many lenders and banks claim they can help, and some can. The only way to know though is to research, compare, and budget. Getting a mortgage refinancing after bankruptcy is not impossible to do, and this advice should help.

-M Petrone

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