Buying a house after foreclosure can be difficult for those whose credit was destroyed due to loosing a house in foreclosure. Fortunately home ownership can once again be a reality if you stick to a basic strategy. You can follow the steps below and be on your way to home ownership again. Here is a little background story on my personal experience. I lost my home a bit before the housing crisis began in 2004. I was going through a tough time and lost my job, the bank did not work with me and started foreclosure proceedings 3 months after falling behind. I quickly decided to just give up and move out, fortunately I was able to get my life back together. So in 2009 I found myself looking to buy a house after foreclosure, after being repeatedly denied for financing by banks and credit unions due to my previous foreclosure, I figured out the steps to do it! Follow them below to ensure you can too enjoy the home ownership dream again.
Buying a house after foreclosure is possible!
Step 1. Obtain a free credit report at AnnualCreditReport.com (this is a website setup to give you free credit report once very 12 months).
Step 2: Read your credit report and check for negative marks or unpaid bills that have been reported. Pay off all the small debts you can afford to pay off. If any bill collectors are sending you letters contact them and negotiate a smaller payment amount. Tell them that you want in writing that they will delete the negative mark on your credit report if you pay! Let 6 months pass after paying off all your small debts.
Step 3. Keep on top of your current bills and ensure your credit cards or any other bills are never paid late! This is very important to not have a late mark on any of your bills after the foreclosure process, if you want to buy a house after foreclosure.
Step 4. Wait at least two years after your home was in foreclosure and you made sure you followed Steps 1-3! The process of to buy a house after foreclosure can be a long process but there are other faster ways to quality for financing, bookmark this blog and look for new posts!
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“Buy a house after foreclosure” that is everyone’s dream after being foreclosed on. As you read in the first part of the series “Buy a House After Foreclosure” if you follow five steps you can be eligible for a mortgage. In this post “Buy Home After Foreclosure – How to Obtain a Mortgage After a Foreclosure” you will learn the gritty details on how to get that mortgage from the bank step by step. While many might think this is just another useless internet article without the details, just keep reading as I was also in the same mess as you and was able to get a mortgage after my house was foreclosed on.
Step 1: Find a local credit union. You can ask friends and family for any local credit union they use. You can also obtain a list of local credit unions by visiting CULookup (see Resources). Enter your zip code on CULookup and you can easily locate a nearby credit union. Read the Membership description to make sure you are eligible to be a member of the credit union. Some credit unions will require you work for a particular company or like in a certain area.
Step 2: Call the local credit union and ask if they provide mortgages to members. Do not mention you have had a foreclosure as this is irrelevant at this point. Read more »
As we already learned from or post “Buy Home After Foreclosure – How to Obtain a Mortgage After a Foreclosure” that getting a loan from a credit union is the best way for most people. For the rare few that want to buy a home before they have had a chance to fix their credit from there previous foreclosure, they need to obtain owner financing. While when most here owner financing they think high rates and unreasonable demands but many times the rates are very competitive and always easier to qualify. If you are determined to buy a house after foreclosure you need to ensure you stay to date on your bills as we talked more in-depth in and save money for a down payment. To get owner financing you will be required many times to put a large down payment sometimes up to 50% of a homes price. Though depending on how fierce the real estate market is in your area for buyers you can find owner financing for as low as 10% down payment.
Contact a local real estate agent and inform them of your previous foreclosure issue. Inform them Read more »
If you have suffered through a foreclosure and cannot get financing through a credit union as discussed in “Buy Home After Foreclosure – How to Obtain a Mortgage After a Foreclosure“ and you need a cosigner as indicated in “Owner Financing The Key to Buying a House after Foreclosure” Then I will help you and show you to get an eligible co-signer.
First things first if you want to buy a house after foreclosure you need to proper cosigner. You need to think like a bank and think of relatives that are eligible based on there income to buy a house through a regular mortgage. Think parents, siblings, aunts, uncles, grandparents, etc! Some have success with friends but many times friends are just reluctant to be on the hook for a mortgage for a friend. So if you want success quickly just think relatives. While a spouse is usually the easiest choice and is the default one for standard mortgages if you want owner financing the person Read more »
Learning how to find real estate deals is the hardest part of real estate investing. Many will be tempted by the local ads on the newspaper announcing foreclosure auctions. While occasionally good deals can be found they are usually just a trap. Most of these real estate auctions do not let you see the property before shopping for them. And most foreclosure properties have been wrecked and destroyed by the previous homeowner, leaving the new owner with a Pandora’s box of trouble. Read more »
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