Question: “I have heard that FHA home loans are easier to get than regular mortgages. It this true? I’m asking because I have a bad FICO score. Do FHA loans depend on your credit score, and if so how much?”
Yes, your credit score will be a factor in the approval / rejection process. But there are several things you should know about it, right off the bat:
- Credit is only one piece of the qualification process. Lenders will also look at your income, the current amount of debt you’re carrying, and other financial factors. So while a good FICO score will certainly help you get approved, there are other things you need to consider.
- Generally speaking, it’s easier for people with bad credit to get an FHA loan than a conventional loan (that’s not backed by the government).
When personal bankruptcy attorneys are retained, their responsibility includes informing the client of the law, drafting the Petition and Schedules, filing the documents with the Court, and attending the Creditor’s Meeting, or §341 Meeting. In a recent case handed down by the United States Bankruptcy Court, a Boston attorney failed to appear at the Creditor’s Meeting for five different clients.
In fact, he sent his legal assistant, who was not an attorney. “The debtors [clients] were right to be indignant,” the Court stated.
Bad credit repair becomes necessary if you get a bad financial report. If you do not get the right person to help you may end up worse off than you started. There is a multitude of debt settlement and other financial aid services available.
Things to watch out for when looking for help are:
Companies that require payment in advance
Companies that say they can get you a new credit report, which by the way is illegal
And companies that bother you every day
A financial report starts the day you receive your social security number. Ev
Pop quiz: What do Walt Disney, Mark Twain and Larry King have in common?
- They each filed a personal bankruptcy and went on to have extraordinary success in life.
Bankruptcy is not a professional or financial death sentence. Just ask Donald Trump who has filed multiple Chapter 11 reorganization bankruptcies for his casinos. Bankruptcy is a financial tool that uses the federal law to protect the honest, but unfortunate debtor. Bankruptcy allows the debtor the opportunity to restructure finances and formulate a plan to repay or discharge debt. Bankruptcy provides the debtor a fresh start to a new financial future – one free of the pressures from debt collectors.
Here’s another question: What honor did Kim Basinger and Burt Reynolds receive after filing personal bankruptcy?
- Each was nominated for an Academy Award in 1997. Basinger won an Oscar for best supporting actress for L.A. Confidential