The so-called Great Recession left many with bankruptcy as a fact of life. Stockton CA was especially hard it – considered by many to be the epicenter of the housing market collapse. While declaring bankruptcy has lost much of its stigma since 2008, it still leaves a long-lasting black mark on your credit report. A low credit score combined with a bankruptcy mark can make purchasing a home after bankruptcy nearly impossible. However, there is hope – and you may not even have to wait for the 7 -10 years for that bankruptcy black mark to come off your credit report!
Attempting to purchase a home through the traditional process – including a home mortgage from a lending institution – is probably out of the question until both your bankruptcy mark ages off your credit report and you improve your credit score to 720 or more. The trouble, however, is that improving your access to credit may well be impeded by your bankruptcy. While bankruptcy may not have the social stigma it once did, it does create a situation that can trap people into a vicious cycle of bad credit and missed opportunities. Here’s where working with a real estate investor can help! Cory Fisk from Perfect Path Investments sees bankruptcies as an opportunity rather than an insurmountable obstacle.
“Banks have highly regulated lending criteria,” says Fisk, “whereas an investor has much more freedom to structure the terms of purchase to fit your circumstances.” Whether the appropriate situation calls for a rent-to-own agreement, a co-signer, or just proof of current income, a deal can be structured to create a win-win between buyer and investor.
Not only does an investor have far greater flexibility to help individuals with bankruptcy get into a home, but by doing so the individual can even dramatically improve upon a damaged credit score:
Bankruptcy may have lost its social stigma, and may even be a prudent business decision, but it still carries significant financial consequences which may prevent you from buying – or even renting – a home suitable to your family’s needs. A qualified real estate investor not only can help you get into your dream home but can also contribute to improving your credit score!