That ranch in Montana is calling your name. Or maybe it is aMontana ski chalet. Unfortunately, if you’ve filed for bankruptcy, property in Montana may see like a distant dream. That light feeling you get after filing bankruptcy is all that stress being lifted from your shoulders and, there is no law against having a dream. Once you get out of debt and your finances under control there is no law that says you can’t buy that piece of Montana property you’ve been dreaming about.
You may qualify for a home loan in as little as two years after filing bankruptcy. To buy a home after declaring bankruptcy, you need to consider two things:
- Your level of savings for a down payment
- Your credit score
The days of zero down payments are over and it is just a bad idea overall. If you are serious about purchasing a home after bankruptcy, use the first year after bankruptcy to save every spare dollar you can. Cancel your cable subscription, eat all your meals in and start drinking cheaper beer. If you want to buy a home after bankruptcy, you are going to need a substantial savings for a down payment and don’t forget about saving for the closing costs.
Your credit score is going to take a hit after declaring bankruptcy in Montana and you should start working on repairing the damage as soon as possible. Keep paying your debts on time, especially student loans and car loans. Check your credit report to make sure it reflects your new, debt-free identity. And, consider getting one credit card, use it and pay it off each month. That will help build your credit score.
Don’t rush it. Before you buy a home after bankruptcy, you need to make sure your finances are in order, your credit is repaired and your saving are substantial. There is lots of land in Montana.
Jim Cossitt is a Montana bankruptcy lawyer based in Kalispell, Montana and is board certified in both business and consumer and bankruptcy law. He provides sound legal advice and asset protection planning to clients throughout Northwest Montana.