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Buying a home after foreclosure

Author: Jessica Bennet
Community Mentor
Ask Jessica
Posted on: 22nd Aug, 2009 01:25pm
Foreclosure has serious negative implications on your mortgage purchase. In fact buying a home after foreclosure becomes very difficult. You not only have to pay more but at the same time you have to wait for a long time to get the approval. Usually, the waiting period for mortgage after foreclosure for an FHA loan is 2 years and for a conventional loan, the waiting period is 3-4 years.




In order to get approval for mortgage after foreclosure, you should have a good credit score and must be in a position to make the required down payment. You must try your best to improve your score and save money to make the down payment so as to get the approval.


In order to get approval for mortgage after foreclosure, you should have a good credit score and must be in a position to make the required down payment. You must try your best to improve your score and save money to make the down payment.
Posted on: 22nd Aug, 2009 01:25 pm
We had a foreclosure in may 2007.
We have no debt and credit score above 700.
To purchase a house, we offer to pay cash 60% and were looking to finance 40%.
We are told that we cannot qualify for mortgage even with a large down payment as the foreclosure is not three years old, is tis correct??
You will need to wati for atleast 4 years before gettign a new mortgage

Good luck and feel free to ask
Posted on: 23rd Aug, 2009 07:20 pm
we went into foreclosure this week by accident , we were trying to refinance and one payment was one day late and the bank did not want to work with us anymore. my father in law wants to help by offering his credit to get a new home. can we refinance after one year with a low interest rate to put the new home under our credit? and if so, do we have to put a down payment, when we refinance?

thank you.
aracely
Posted on: 26th Dec, 2009 01:35 pm
Hi aracely,

You need to wait for at least 2 years after foreclosure to qualify for an FHA-insured loan and 3-4 years to get a conventional loan. It will be difficult to get a mortgage in your name just 1 year after a foreclosure. Moreover, a lot will depend on your credit scores. Apart from waiting for a certain length of time after the foreclosure, you also need to improve your credit considerably to qualify for a home loan.
Posted on: 28th Dec, 2009 02:01 am
how much do i need to put down when i'm ready to buy again, after going into forclosure?
Posted on: 07th Feb, 2010 09:06 pm
You will be better off if you put down at least 20%. FHA only requeires 3 % but that doesnt mean that any lender has to do your loan. A lot of lenders these days have their own guidelines when it comes to this type of stuff. You probably will have a hard time finding financing. You could find a home through owner financing that will be willing to hold a note for 2 years or you may have to go hard money.
Posted on: 07th Feb, 2010 09:17 pm
I was foreclosed on last year. I see from above that I will need to wait at lest two years before I can try for another loan, but when does the clock start ticking? From when the Notice of Default was filed or from the date I moved out of the property?
Posted on: 17th Mar, 2010 07:56 am
Hi waiting,

Most lenders would want you to wait for at least 2 years after a foreclosure to apply for a new loan. The 2 years will be counted from the day your property is auctioned off and the ownership gets transferred from you to the new owner.
Posted on: 18th Mar, 2010 12:13 am
we want to buy a home we foreclosed on a house 2 years ago. but filled chapter 7 bankruptcy in 2004. did not put house on bankruptcy but lost later on. is there anything we can do?
Posted on: 07th Apr, 2010 03:53 pm
To Christina,

Which type of bankruptcy did you file in 2004? If you filed bankruptcy Chapter 7 and got discharged the same year, you can apply for a mortgage now. The foreclosure will stay on your credit report. But since it is more than 2 years old, you can definitely go for a home mortgage.

FHA requires you to wait for at least 2 years after a foreclosure or bankruptcy to qualify for a new mortgage. However, you have to wait for around 3-4 years to after the bankruptcy discharge or the foreclosure to get approved for a conventional mortgage. A lot also depends on how much you have improved your credit scores since the foreclosure and the bankruptcy. What are your current credit scores? Do you have any other negative items on your credit report like charge-off, etc.?
Posted on: 08th Apr, 2010 02:38 am
I had to give-up my house/Deed in Lieu of foreclosure 1 year ago. Since then, I am now dept free, and able to put up to 20% on a down payment on a new house. My credit scores fluctuate from 795-667-627. How will lender see me if I try to purshase a home within the next 4 months?
Posted on: 12th Apr, 2010 03:07 am
Hi rey,

A similar query has been discussed on the following page. Hope, it helps you.
http://www.mortgagefit.com/know-how/about37335.html#160293
Posted on: 13th Apr, 2010 02:20 am
i went bankrup 2 years ago and added my house in the bankrup but the house hasn't gone thur foreclosure how long do i have to wait to purchase another house?
Posted on: 21st Apr, 2010 05:55 pm
generally 4 years I believe.

Until then you could look at Hard Money lenders, as they don't really care about Credit Score.
Posted on: 21st Apr, 2010 08:12 pm
we have a foreclosure in October of 2008. We have no bills, (credit card , car notes or dr bills) We have $100,000 to put down on a house in the bank. We were wanting to buy a $300,000 house and put 20 %, Do you think we could get a mortgage.
Posted on: 12th Jul, 2010 01:41 pm
Posted on: 12th Jul, 2010 11:49 pm
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