Unexpected problems, such as a sever illness or job loss can cause a person in New Jersey to suffer significant financial hardship. They may simply have no means to pay their debts. In such situations, they may choose to file for bankruptcy, but they may be concerned about obtaining a mortgage after bankruptcy, especially if their home was foreclosed upon. The following are three tips for people who find themselves in just such a situation.
Reviewing a credit report
If your home was foreclosed upon or you filed for bankruptcy, your credit report will reflect these events for seven years or more. However, after that time period has passed, these events should automatically be removed from your credit report.
It is worthwhile to check your credit report when the time comes, to ensure that the foreclosure and bankruptcy filing are indeed taken off of your credit report. If there are any mistakes, these should be addressed.
Rebuilding credit
There are some ways you can rebuild your credit to increase your credit score. First, it is important that post-bankruptcy or foreclosure you pay all your bills on time.
In addition, you may want to do what you can to keep your credit utilization ratio as low as possible. You can do this by paying down your debts as quickly as you can. Ideally, you want to pay off your entire credit card balance each month. You can also apply for a secured credit card that you make small purchases with and pay off every month.
Maintaining employment
Not everyone likes their job. However, if you are trying to get a mortgage, lenders will want to see that you have a stable job history. Thus, it is important to keep your job after filing for bankruptcy, even if you do not like it. Another benefit of keeping your job is that you will have a reliable source of income for paying off your bills.
Learn more about bankruptcy in New Jersey
These are only some tips on how to repair your credit after bankruptcy and foreclosure. Our firm’s bankruptcy page may be of interest to those who want more information on this important topic.
