Many families in Illinois have come upon hard times over the years. Whether their financial stress is from unexpected medical bills, student loans, losing their job, or a divorce, it can be a dark time in a person’s life. Thankfully, bankruptcy does not mean that a person’s financial future is ruined. With a little planning, a person can emerge from a bankruptcy with a fresh start and even the ability to purchase a house.
Owning a home is a dream for many Americans. But those who have had a bankruptcy may feel like their financial future is ruined and they will be renters forever. But that is not always the case. A person who has declared bankruptcy should follow some guidelines to get their finances back together in order to work towards being able to purchase a house.
First, a person should repair their credit. Good credit is key in purchasing a home. A person should review their credit report and report any issues that may be present. They should also reestablish their credit by getting a secured credit card and paying it off monthly, paying all bills on time, and paying off any debt. The next step would be for a person to write a letter of explanation to a mortgage lender as to why they needed to declare bankruptcy. Details of the circumstances that led to the bankruptcy as well as the steps a person has taken since the bankruptcy to prevent a future one. Once a person has their finances in order they can get preapproved for a mortgage and begin their house search.
Owning a home can be a reality for families who have had a bankruptcy. With careful planning a bankruptcy does not need to be the end of a person’s financial future and can instead be a fresh start.