I have had a home for a number of years now.  Every five years or so, I go talk to my banker to renew my mortgage.  I have shared my experiences with my friends and family, but I ran into something new that I thought I would share with all of you.

You see, my brother had some credit problems in the last year forcing him to go bankrupt.  Now, don’t get mad at him, it came down to him having large medical bills and he had no other recourse.  In his bankruptcy, he did not have to give up his home.  Fast forward eight months and he needs to renew his mortgage.

We both thought the process was the same, especially since he owned his home before he went bankrupt.  When he got to his meeting with his banker and let them know, he found out that he had to apply for a bad credit remortgage.  This is a little different than the times that he had gone there before. 

The big difference for him ended up that his interest rate on his mortgage went up half a percent.  Though that might not seem like much, that can add up to thousands of dollars over the course of his mortgage.  Mortgages after bankruptcy can also have other conditions as well, but he lucked out since he knew the bank manager and has made his payments on time for the last ten years.

So, if you have gone bankrupt and are in need of remortgaging your home, talk to your banker beforehand - chances are you won’t be treated the same as you used to.