Filing for bankruptcy may seem like the ultimate roadblock to applying for a mortgage loan, but that’s not necessarily the case. The DiMora Team are real estate experts in the Novi and Northville neighborhoods, and we know that you need to know what type of bankruptcy you filed. This is key to keep in mind because the type of filing impacts your period of waiting time to get a mortgage. The most common consumer bankruptcy filings are Chapter 7 and Chapter 13.
Chapter 7 is the most common bankruptcy filing type for non-business entities, typically consumers. People who are unable to repay their debts typically file this type to have their debt written off, allowing them to start from square one from a financial perspective so they can rebuild. From a lender perspective, mortgage lenders usually set more rigid requirements to get approved for a loan after filing for Chapter 7 bankruptcy.
Chapter 13 bankruptcy differs from Chapter 7 as it involves the creation of a repayment plan for people who are generating income consistently and want to pay their debts. These repayment plans typically last 3 to 5 years, and once the plan is completed, the debts are discharged. Mortgage lenders may be more favorable towards prospective borrowers who filed for and completed a Chapter 13 bankruptcy since payments were made towards the debt, rather than it being written off. Check out below to see what home is currently listed for sale in Walden Woods in November 2024:
25905 Laramie Drive, Novi: 4 bedrooms, 4.1 bathrooms, 3,615 sq. feet, 3 car garage, Listed Price: $750,000
Walden Woods Home Listed for Sale
November 2024
For more information on Walden Woods, contact The DiMora Team today at 248-505-7728 or jim@dimora.com.