Waiting On Refinancing

Anthony asks how long he should wait to refinance after a bankruptcy. Dave says most programs will require four years of crystal-clear credit.

QUESTION: Anthony in Arizona from Twitter asks how long he should wait to refinance after a bankruptcy. Dave says most programs will require four years of crystal-clear credit.

ANSWER: Most of your mortgage programs now will require four years of crystal clean, no-blemish credit after filing bankruptcy. What you're going to end up doing is renting—or if you've reaffirmed on your mortgage—you're going to pay it early. You're going to pay it 15 days early for four years. Then we'll talk about being able to refinance it.

Will mortgage guidelines change during that time? Should you check back on it? Absolutely. The mortgage world is in an upheaval. They are changing everything every day. You should look back on that. But from the time of your discharge of your bankruptcy, if you have a mortgage, you would have reaffirmed the mortgage—resigned for the mortgage. Otherwise, you wouldn't need to refinance. You would've lost the home in the bankruptcy.

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