| You have gone through bankruptcy and you do | | | | counseling, and the counseling will help you |
| not owe anyone. Now is the perfect time to | | | | in several ways. A good credit counseling |
| purchase that home you have always wanted | | | | agency will help you create a budget and |
| right? Wrong! Yes, you can probably locate a | | | | counsel you in how to use and stick to it. |
| real estate mortgage lender, since you cannot | | | | They offer counseling on using credit in your |
| declare chapter 7 bankruptcy again for at | | | | future, as well as how to re-establish your |
| least 6 years. The problem is that you will | | | | credit. They can help you move toward your |
| pay the highest finance charges for the | | | | goal of buying real estate. Once you have |
| privilege of obtaining that real estate | | | | successfully completed credit counseling, ask |
| mortgage, charges that will extend over the | | | | them for something in writing to that effect. |
| life of the real estate loan. | | | | It can help when applying for your real |
| | | | estate loan |
| Before even looking at real estate, get your | | | | |
| credit straightened up first. The bankruptcy | | | | The problem is finding a reputable agency. |
| will appear on all three of your credit | | | | Some are downright questionable. Here are a |
| reports from seven-to-ten years, which will | | | | few ideas to assist you in locating a |
| make you a higher risk to real estate | | | | reputable agency: |
| lenders. You cannot do anything about this; | | | | |
| however, you can show real estate lenders | | | | They should be a member of either the |
| that you are handling credit much better now | | | | National Foundation for Credit Counseling or |
| by rebuilding it. This can lower your risk | | | | the Association of Independent Consumer |
| factor, when obtaining a real estate | | | | Credit Counseling Agencies. Both are national |
| mortgage. Using the following improvement | | | | trade associations. |
| steps, you actually can rebuild your credit | | | | |
| in a relatively short time. | | | | Agencies approved by the U.S. Trustee's |
| | | | office (part of the Department of Justice) |
| First, get copies of your credit report from | | | | are good agencies. You can see those for your |
| the credit agencies, and clean them up. You | | | | area at: |
| have the right to one free report from all | | | | |
| three agencies annually, which can be | | | | Interview the agencies, asking what they |
| obtained through | | | | offer and the cost for each service. Good |
| | | | agencies should meet with you for 60-to-90 |
| Ensure that creditors, who were listed in | | | | minutes, reviewing your financial situation |
| your bankruptcy, have cleared their | | | | and offering budgeting advice before doing |
| information from your credit reports. | | | | any credit repair. |
| Otherwise, it will appear as if you still owe | | | | |
| them money and are not paying. | | | | Ask for costs in writing from the agency you |
| | | | choose. They should charge around $50 or |
| Ensure any creditors not listed in your | | | | less, with budget counseling sessions for |
| bankruptcy and you are paying regularly have | | | | less than $20 each. |
| been reporting your good credit record to all | | | | |
| three agencies. Contact any not reporting | | | | Steer clear of those who push their debt |
| this and ask them to do so. This will | | | | management program, where they want you to |
| increase your chances of getting a loan for | | | | pay all your remaining creditors through |
| your real estate. | | | | them. |
| | | | |
| If there was a specific event or cause for | | | | Check for more ideas from the Federal Trade |
| your bankruptcy, you can add up to a 100-word | | | | Commission. |
| explanation to your credit report at each | | | | |
| agency. The real estate lender will get this | | | | Use the credit counseling agencies to help |
| explanation as part of your credit report. | | | | you rebuild your credit the right way. It can |
| | | | take less than a year to achieve; yet, it |
| It will look especially good to real estate | | | | will make a big difference when you obtain |
| lenders if you have received credit | | | | that real estate mortgage. |