(Home Owner) Life After Foreclosure
by: Editorial Team
We have all heard about the housing troubles that hit so many so hard over the course of the last decade. As a result of this tumultuous time many people who previously called themselves homeowners have been renting, watching, and waiting to see what was going to take place, where home ownership fit into their future. The housing market has really come back to a healthy place, interest rates are low, values are going up enough to help homeowners but not enough to out price most new buyers, and bad credit mortgage lenders are popping up due to government backed home loan programs. So, what if you have a foreclosure on your credit record? Poor credit lenders are coming up with reasons (finally) to help people.
Many of the following FHA guidelines have been in place for a while, the new news is that there is finally wiggle room, and some downright loosening of them. Today’s guidelines stipulate a “waiting period” after the foreclosure and this is meant to allow for a rebuilding period. It is important to look at this time as just that, get the feet under you and rebuild. See the guidelines below, and see some rebuilding tips below that.
Short Sale with late payments – You may apply for an FHA Loan THREE (3) years after your short sale closes.
Short Sale with no late payments – There is No Waiting Period.
Foreclosure – You may apply for an FHA Loan THREE (3) years after your home has gone to foreclosure.
There is a lot of talk of these loosening to only two years from the home being sold, and we believe that will take place before year end (2013). For the first time since many tough guidelines were put into place, some hardships are taken into account that allow borrowers to get around the wait periods. Major financial changes cannot be helped many times and the looser guidelines are meant to take that into account.
Those banks that offered home loans with bad credit in the past are heading back to the market as they are seeing a safer, more lucrative landscape. In short there is more money due to the higher interest charged, and the rising home values are making it less of a risky proposition for these lenders. How do you find out if you can purchase a home again?
First – Get your Credit Scores and Reports. It is critical to find out whether everything was recorded accurately, and what else is on the report. Get it this way as it is instant and accurate.
Second –Contact one of our loan specialists and find out exactly where you are in the process, find out what needs to be done, or get pre approval.