Bankruptcy is never a happy moment in anyone's life.
Once a person has filed for bankruptcy, it is a long road to financial recovery.
However, there are some people who think of buying a home even after filing for bankruptcy.
While this may seem impossible, it is not.
All it requires is proper financial planning and patience.
Also, the person should be willing to wait for 2 years after the bankruptcy has been discharged.
Once you have made up your mind to buy a house after bankruptcy, it is time to look at your credit report.
Request all the three main credit bureaus for your credit report.
You are entitled to one free report each year.
Check your report carefully and see where the negative remarks are mentioned.
Then write a letter to each credit bureau and request them to remove those items that carry the negative remarks.
Do not ask for more than 4 items to be removed.
Then it is time to start saving money for the down payment.
Usually the minimum amount is around 10 percent and you should aim for this or higher.
The way to go about saving is to place your money in a high interest savings account.
Put money into this account diligently each month.
However, at the same time do not fall behind on any of the other payments.
Make sure that all your bills and credit cards are paid in full and on time.
If you still have any debts, clear them or at least try to reduce them as much as possible.
Lenders look at this very favorably.
Once you have the amount saved for the down payment and you have been clearing your bills regularly, approach a lender.
Get a family member to co-sign the agreement.
However, make sure that you can afford the monthly payments or else the family member will suffer.
His or her credit rating will be pulled down because of your inability to pay the mortgage payments.
Remember, when you are looking to buy a house after bankruptcy, you will have to wait for a 2-year period after the bankruptcy has been discharged.
So, wait for this period to finish before applying for a mortgage.
You will get a better interest rate and also you may get a mortgage without the prepayment penalty if you can show that you have the money for the down payment.