If you need assistance, please call 704-995-3330

Life After Foreclosure: When Can You Buy?

Thursday, January 30, 2014   /   by William Culp

Life After Foreclosure: When Can You Buy?

For those consumers who have a foreclosure on their record, it may feel like they will never repair their credit enough to become a homeowner again. It can happen, but it will depend on a variety of variables.


 


Bouncing back after a foreclosure will depend greatly on your individual circumstances, as well as the mortgage interest rate you are willing to pay. Foreclosures can remain on your credit record for seven to 10 years. Most lenders will consider your request for a home loan two to four years after your foreclosure, although your interest rates will be higher.


 


Keep an eye out for predatory lenders that will issue a home mortgage in less time than average, but will charge you obscenely high mortgage interest rates, fees, and penalties.


 


A quality lender will expect you to show that you have cleaned up your credit. In this light, a borrower who has worked hard to reestablish good credit may also be shown some leniency by the lender.  


 


Repairing your credit is possible, although it can be a slow-moving process. Act as quickly as you can to take care of any outstanding delinquencies, tackling a little at a time until you get back on the right track. Make an effort, if at all possible, to repay your debt in full and on time for six months to a year to prove you are working hard to repair any damage.


 


It will also be helpful to provide a reasonable explanation about the circumstances that led to the foreclosure, such as exorbitant medical expenses or lifestyle changes beyond your control. If you declared bankruptcy because you were laid off from your job, the lender may be more sympathetic. If, however, you went through bankruptcy because you overextended personal credit lines and lived beyond your means, it is unlikely the lender will readily give you a break.


 


If you've waited several years after your foreclosure and you're still having trouble obtaining a traditional mortgage, consider other options, such as subprime mortgages, which are made to borrowers who do not meet traditional credit criteria at a higher interest rate.   


 


As a Member of the Top 5 in Real Estate Network®, our team has a wealth of real estate and home ownership information that may be of help to you. Feel free to contact us at any time to learn more about this important information, and be sure to forward this article on to any friends or family that may be interested as well.

Giving Tree Realty
Bruce & Brandy Bleiman
1244 East Blvd
Charlotte, NC 28203
704-995-3330
704-323-8080

Based on information submitted to the MLS GRID as of 4/15/2024 4:32 AM CST. All data is obtained from various sources and may not have been verified by broker of MLS GRID. Supplied Open House Information is subject to change without notice. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information. Some listings have been excluded from this website.
The data relating to real estate for sale on this site comes in part from the Broker Reciprocity/IDX program of Fayetteville Association of REALTORS®. Those properties marked with the IDX icon are provided courtesy of the Fayetteville Association of REALTORS®, Inc., Internet Data Exchange (IDX). Information Deemed Reliable But Not Guaranteed and Should be Independently Verified. Information being provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Copyright 2014 Fayetteville Association of REALTORS®. All Rights Reserved. April 15, 2024
Information Deemed Reliable But Not Guaranteed.
This site powered by CINC: www.cincpro.com