| Bankruptcy can make getting any kind of | | | | loan (bad credit loan) now comes with a |
| financing much more difficult. However, it's not | | | | pre-payment penalty. This penalty is usually about |
| impossible anymore to get financing, even a few | | | | 6 months worth of house payments. The |
| days after the discharge of a bankruptcy. But, is | | | | pre-payment penalty period usually lasts 2-3 |
| getting a loan soon after a bankruptcy a smart | | | | years. That means, if you want to refinance or |
| thing to do? | | | | sell your house in that period of time, that will |
| It can be tempting to buy a new home, new car, | | | | make it very difficult, if not impossible to sell or |
| etc., after a bankruptcy discharge you have no | | | | refinance. That means that you are locked in. |
| debt left. You will probably feel like you can afford | | | | Once you sign those mortgage papers you |
| a larger house payment. Here are some factors | | | | absolutely have to make those payments. If you |
| to consider before committing yourself to a new | | | | don't have the amount of the pre-payment |
| house payment. | | | | penalty in savings, you are locked into making the |
| Pre-Payment Penalty - Almost every subprime | | | | payments or losing the house. |