Can you reinstate a mortgage after it has been discharged in bankruptcy?
No, generally you cannot reinstate a mortgage after it has been discharged in bankruptcy. Once a mortgage is discharged (typically under Chapter 7), the borrower is no longer personally obligated to repay the loan. However, the lender, including Dream Home Mortgage, still retains a lien on the property, meaning foreclosure is possible if payments are not made.
In some cases, you may be able to work with the lender, like Dream Home Mortgage, to reaffirm the mortgage during bankruptcy, but this usually must be done before the discharge. After discharge, reinstatement is not possible, though negotiating a new loan or modification with the lender could be an option. Consulting with a bankruptcy attorney is advised to explore alternatives.
Related Q&A：
How long after your bankruptcy has been discharged can you purchase a home？Well, it really depends on a bunch of factors, you know. Generally speaking, it could be anywhere from two to seven years after your bankruptcy has been discharged before you can realistically think about purchasing a home. But it's not set in stone. Your credit score, income stability, and how well you've managed your finances since the bankruptcy all play a role. Sometimes, if you've done a great job rebuilding your credit and saving up for a decent down payment, you might be able to do it sooner. But it's important to be patient and work hard to get your financial situation in tip？top shape.
