Buying a home after foreclosure

Posted on by in Uncategorized

rent or buyMany, many American’s and people around the globe have lost their homes to foreclosure in the last few years. It’s extremely sad and some of it was due to people being miss sold mortgages, some down to bad personal financial planning and some due to economic crisis such as job loss. However if you was foreclosed on you may have fixed your situation and feel that you are ready to buy again.

How long do you have to wait before buying a home after foreclosure?

When you have been foreclosed on it’s going to leave a stain on your file but that does not mean you will never get a mortgage again. Fannie Mae are the biggest buyers of mortgage loans in USA and they own the majority of foreclosed homes and they allow reduced periods of time for buying a home after foreclosure only in extenuating circumstances which include death and illness. Sadly away from that it is likely you will not get accepted for a new home loan for 5-7 years after. 7 years is the amount of time that bad credit needs to be wiped from your files.

It’s been 5-7 years since foreclosure, are you sure you are ready to buy?

More importantly than whether you can buy a home is the question, should you be buying a home. I suggest you take a serious look in the mirror and consider the reason you was foreclosed on in the first place and take the opportunity to make sure you do not make the same mistake again.

This time around make sure you have a large deposit, make sure you can afford a rise in interest (it’s extremely low right now and will rise) and also make sure you have plenty of stockpiled cash to deal with months out of work so that you can keep meeting the payments.

If in doubt you may seriously benefit from staying as a renter. Check out my post Rent or Buy?

GD Star Rating
loading...

Tags: , , , , , ,

No comments.

Leave a Reply


CommentLuv badge