Losing
your home in a foreclosure is a traumatic experience. Not only that you will be
looking for another place to stay, foreclosure has a negative impact on your
credit score. The good news is, you can buy a house again even with foreclosure
on your credit history.
How
can I buy again? How long do I have to wait? These are the common questions
from home owners who have had foreclosure. One way to ensure and improve your odds
of getting another home is to work on your credit score. You can start by
paying your other credits on time, such as credit cards or auto loans. Make
sure that these payments are reported to credit bureaus every month. Making
on-time payments will increase your credit rating and will more likely get you
another mortgage to finance a new home.
Timing
is also a determining factor. The longer you wait to purchase a second home can
work on your favor. More waiting time means more chances of repairing your
credit score. Oftentimes, lenders will take into considerations the past 2
years of your credit history following foreclosure.
Typically,
the waiting period before buying a home following foreclosure is seven years. This
is also the same time required by Fannie Mae; a federal entity that grants home
loans. An exemption of three years if the reason of foreclosure falls under
extenuating circumstances such as death of family member, job loss, divorce or
illness. To apply for home loan with extenuating circumstances, you are
required to submit documents to validate your claim. Along with this, you might
also be asked to present an updated credit report.
Owning
a second home is not impossible but it surely is a struggle. What if you can
stop foreclosure? Then you don’t have to worry about repairing your credit
score. You can move on with your life and buy another home whenever you’re
ready. Sell your home quickly to private investor like Lucas Properties LLC. You
might lose your home now but with your credit score in top shape, you will be
able to purchase another home in no time.
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