Homeownership After Bankruptcy

If you thought it was impossible to become a homeowner following a bankruptcy, this article tells you how to make this goal achievable despite the credit problems you´ve encountered in the past.


 Bankruptcy is a drastic but often helpful solution to a financial catastrophe. With the current negative state of the economy, more and more people are opting for the relief that bankruptcy provides, despite the new stricter guidelines that were implemented in October of 2005. If you are one of the millions of individuals who has filed for bankruptcy and you’re interested in rebuilding your credit, it is possible. Despite the fact that you’ve taken the most extreme way possible to straighten out your financial future after filing for bankruptcy doesn’t have to be as bleak as you may believe. If you want to finance a car following a bankruptcy or get a credit card or two, you can. Even if you want to own a home following a bankruptcy, it can be achieved as well, as long as you choose the right route for your particular situation.

 Land Contract

 One way to achieve homeownership following a bankruptcy without the need to worry about having your credit scrutinized is to buy a home on land contract. Purchasing a home this way usually requires a down payment of approximately $5000, depending on the specific guidelines that the seller of the home has chosen. Similar to a “lease to own,” you would make payments to the seller until it has been paid in-full and there is  sometimes a balloon payment due at the end of the contract. If you choose to purchase a home on land contract, you can always work on improving your credit so that anytime you can attain a mortgage, which will pay off the seller and give you more peace of mind.


  Rent to Own

 Buying a home in this fashion is a great way to “test-drive” a house in order to  determine if purchasing it is what you really want. Some sellers require a down  payment for a rent-to-own while others only require first month’s rent and a security  deposit.