Recent Grads Can Get a Home!

Recent college or university graduates are not usually considered prime candidates for home ownership Middletown. But for those fortunate few for whom buying a home is a realistic possibility, there are a few programs available that can help you out.

For most new graduates, buying a home is one of the furthest things from their minds. Many have massive debt loads from student loans and are taking low-paying entry level jobs in their chosen fields. In the current economy, many are even moving back home with their parents until they can afford a place of their own.

But for some, post-graduation is an attractive time to buy a home. Many young people get married during the year after graduating, and are looking to set up a household, with two incomes to pay the bills. Those who have completed graduate school may have secured a well-paying, professional position they intend to remain in for some time and often have relatively little student debt, owing to paying their way through school on graduate assistantships.

State mortgage Middletown help for grads


Other states may offer similar programs; check with your state housing authority or department of higher education.

Special deals for alumini

In some areas, mortgage lenders offer special deals for graduates of area schools. For example, MFG Mortgage Services in Reno, Nev. offers a 25 percent reduction in its mortgage origination fee for graduates of the University of Nevada-Reno. Graduates of The College of New Jersey can save $500 off closing costs by getting their mortgage through Fairway Independent Mortgage of Sun Prairie, Wis.

Another way to save on a home loan Middletown is through your university credit union. Even if you didn’t join as a student, most university credit unions are still open to alumni, and may offer better mortgage terms than you can find on the commercial market, as well as offering special programs for alumni.

And don’t forget about your alumni association. Many alumni groups have arranged for special insurance rates for their members, which can add up to several hundred dollars a year on home insurance.

Chapter 7 Bankruptcy and Foreclosure

Chapter 7 can eliminate second liens after foreclosure

For a homeowner who has decided to go ahead and surrender their home through foreclosure, Ebert said a Chapter 7 may be useful for extinguishing potential claims by secondary lienholders, such as in the case of a home equity loan or second mortgage, who might otherwise seek repayment by laying claim to other assets held by the homeowner. Some states allow this, others do not - this is one of the areas where a bankruptcy attorney licensed to practice in your state can be helpful.

It should be noted that a bankruptcy does not provide relief from all debts - unpaid taxes, child support, alimony and loans obtained through fraud, among certain other debts, cannot be extinguished by bankruptcy.

Impacts on credit

Finally, there are the impacts on ones credit rating to consider. As mentioned above, a bankruptcy remains on your credit rating for 10 years, a foreclosure for only seven. However, many mortgage lenders may prefer to write a mortgage for someone with a bankruptcy on their record rather than a foreclosure.

Furthermore, many lenders will actively seek out persons who have recently filed for bankruptcy - Ebert said it's not uncommon for persons to receive credit card offers during the process itself. The bottom line is, credit can still be available after a bankruptcy - but it's going to be much more expensive than before. Bankruptcy and its impacts on your personal and financial life can be very complicated. That's why it's important to talk with a qualified bankruptcy attorney and preferably, a personal financial advisor as well to sort out the pros and cons before taking such a major step.

Bankruptcy and Foreclosure

So you're in default on your mortgage. You've several months behind on your payments. You've tried and failed to get a loan modification and work out a repayment schedule, and foreclosure is looming. Should you consider declaring bankruptcy?

In terms of avoiding foreclosure, declaring bankruptcy might be considered the nuclear option. It has the power to wipe out many of a borrower's debts while holding other creditors at bay. It can enable a borrower to hold onto important assets such as a home or car, while working out a repayment schedule to get caught up on payments for them.

But a bankruptcy is generally considered a last-ditch option for dealing with overwhelming debt. For one thing, you may have to give up many of your current assets, such as savings and certain investments, in the process. A bankruptcy also has a long-term impact on your credit rating, remaining on your credit report for 10 years - a foreclosure, on the other hand, only remains on your record for seven. However, there are circumstances when it might make sense to declare bankruptcy in order to hold on to a home in which you're emotionally and financially invested.

First of all, you're going to want to talk to an attorney if you're seriously considering filing for bankruptcy. A certified nonprofit debt or housing counselor (who you should have already been working with in your efforts to obtain a loan modification) can help you work out some of your options beforehand and help you determine if bankruptcy is something you want to explore, but you'll need an attorney to explain all the considerations involved in your personal situation and help you decide if you wish to proceed.