Obtaining a home equity loan after a bankruptcy can seem particularly difficult. However, it is by no means impossible for someone whos willing to take time to explore options offered from different lenders. Here are some things you should know about getting approved for a home equity loan after bankruptcy.
The term home equity loan typically refers to a second mortgage (a lien that is in secondary position to a first mortgage). If the borrower defaults on a loan, the lien holder in first position is the first to be repaid and any interested parties (e.g. second mortgage lender, tax collectors, mechanics liens) will be compensated in the order that they appear on the title or deed of the property. Because of that, lenders that hold second mortgages assume a higher risk than those that hold first lien positions.
You will almost certainly be looking for a lender that specializes in sub-prime or non-prime loans. There is no shortage of sub-prime lenders, however, with current trends showing the sub-prime sector of the mortgage industry to be increasing exponentially each year.
One of the most important aspects of obtaining a home equity loan (particularly...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
