If you are looking for refinancing after bankruptcy, what you are really looking for is a home loan after bankruptcy because a refinance is simply a new home loan, modified from your existing one. You might think that there is no way that you have a chance in altering your home loan, with the bankruptcy monkey on your back, but you can do it, if not now, maybe in a year or two. The more equity you have in your home (equity is how much of your house you own, not the bank), the higher the chance there is that you’ll be accepted for a refinanced loan. Unfortunately, most folks after bankruptcy have no equity in their homes, making it nearly impossible for them to be accepted. Whether or not you have equity call around to all of your local subprime mortgage companies because not only are there very few of them remaining, but you likely will be turned down from them many times because of your bankruptcy. Subprime mortgage loans differ from prime mortgage loans in that they are meant for those with a poor credit history. Add a recent bankruptcy on top of that and you are faced with paying extremely high interest rates. Sure, the high interest rates on the subprime loan will be tough to swallow. But if you build up you credit history, you should have no problem refinancing for a lower interest rate within a year.

Rather than getting a modified home loan right away, consider waiting a few months so that you can build up your credit history. That way you have a much higher chance of being accepted for a loan. Other than just building up your credit score, start putting money into a savings account. Doing these two things show to your lenders that you are becoming more financially responsible. As such, you’ll get a lower interest rate.

When dealing with subprime mortgage companies watch out for hidden fees. They know that they are your last option, so some will try to suck out as much money from you as possible. 

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