How to Build a House After Bankruptcy
- 1). Obtain a copy of the Order Discharging Bankruptcy for your bankruptcy proceeding. When your bankruptcy case was completed, you should have received this form from the bankruptcy clerk's office. However, if you did not or no longer have a copy of it, you may contact the bankruptcy clerk in the district in which your case was filed to obtain a copy. You will be required to provide this document to acquire financing.
- 2). Pay your bills on time. You will need to establish a good pay history with any lenders, landlords, and utility companies you have. Many lenders that specialize in post-bankruptcy financing will look at non-traditional credit lines, such as childcare and utility companies, to determine if you can be trusted with a loan.
- 3). Arrange financing. Your first avenue for financing will be any banks with which you previously had accounts and that were treated favorably in the bankruptcy. If you had a car loan in the bankruptcy that was paid, the bank that held the loan may be willing to provide financing for another loan. However, any lender that was not paid in the bankruptcy is unlikely to offer funding to you.
- 4). Locate a mortgage broker. If you cannot obtain financing with a bank with which you already had a relationship, you should contact a mortgage broker in your area. Mortgage brokers have relationships with several lenders, many of which specialize in post-bankruptcy financing.
- 5). Locate a builder. Look in the yellow pages or online to find a general contractor to build you house. You may also ask for referrals from friends and family members to ensure that the builder is reputable. You might also consider turning to a real estate agent who may work with developers in your area. Another option is to contact the Chamber of Commerce in your area, or the Better Business Bureau for referrals.
- 6). Work with the builder to choose the layout and design of your home. Most home builders will have a set of layouts from which to choose; however, you may also be able to work with the contractor to design the layout yourself, or make alterations to the designs he already has. You will have many opportunities to work with the contractor throughout the building process to ensure that you are happy with the finished product.