Bankruptcy Alternatives Blog

Re-financing and Using a Mortgage as a Bankruptcy Alternative

As personal debt levels continue to increase, people are left to explore their options to deal with their debts. If you own your own home, it may be possible to re-finance your home to deal with your financial problems.

As we have discussed in our articles on Getting a Mortgage to Pay off your Debts and on Ways to borrow against your house as a bankruptcy alternative it is possible to use the equity in your house to repay your higher interest rate debt.

The process is not complicated at all.

The mortgage broker starts by taking an application and getting the clients story. Here’s how a mortgage broker explained it:  “If the deal is pretty straightforward I process the application (getting the best deal possible) and obtain an approval. Sometimes a client may not fit the guidelines and I may have to work with the lender to sell the deal. I have quite a good rapport with many of my lenders and because of this they will work with me to get the deal done. After obtaining the approval an appraisal may have to be done which I also arrange for you. Next papers must be signed and documents collected from the client. To do this I usually meet the clients at their home at a convenient time whether it is during the day, an evening or a weekend. From there it’s pretty clear sailing and the deal closes” explains the mortgage broker.

Contact a local mortgage broker to determine if a mortgage refinancing is a suitable bankruptcy alternative for you.

References: bankruptcy, bankruptcy alternatives, mortgage, mortgage broker