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Answers (11)
- Patti Prescott-Chrisman, "PattiPChrisman"
- Contributions:48
Difficult situations happen and sometimes foreclosure is the only answer for some folks. It will likely be many years before you will be able to get a mortgage through a bank. You may want to make efforts to rebuild your credit over time. A lease purchase may be an option. Owner financing w/ a long balloon term may also work.
- Pacita Dimacali
- Contributions:1254
This question was asked and answered in this article :"How does a foreclosure or short sale affect your credit score?"
And in a class where we became Certified Distressed Property Experts (CDPE)
We have a chart showing the effects of a foreclosure versus a short sale.
FUTURE FANNIE MAE (primary residence)
- A homeowner who losea a home to foreclosure is ineligible for a Fannie Mac backed mortgage for a period of 5 years.
- If lost through short sale, for only 2 years
FUTURE LOAN with any mortage company
- On any future 1003 applicaiton, a prospective borrower will have to answer Yes to question C in Section VIII of the standard 1004 that asks "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?"
- no similar declarations or questions regarding a short sale
CREDIT SCORE
- With a foreclosure, credit score may be lowered anywhere from 250 to over 300 points, and will typically affect score for over 3 years
- only late payments on morgage will show and after sale, mortgage will be reported as paid or negotiated. This will lower the score as littel as 50 points if all other payments are made. A short sale's effect can be as brief as 12-18 months
CREDIT HISTORY
- Foreclosure will remain as a public record on a peron's credit history for 10 years or more
- Short sale is not reported on a credit history. There is no specific reporting item for "short sale". The loan is typically reported "paind in full, settled."
So your best to repari your credit by paying down your other outstanding bills, and making sure you are on time with your payments.
Good luck!
- Young - Jin Yang, "MyValleyDreamHome"
- Contributions:96
Don't worry Shilom29. Light does exist at the end of the tunnel. That is if you are willing to work at it. Having good credit is the most important determining factor, so start paying off your bills one by one.
Next is to make sure you look at your past behavior. How we spend is just as important if not more than how much we make. Most of us can into the habit of spending more as we make more. We end up at the same place as before. To stop this cycle I would start managing your finances with a sight like Mint. They have a free service to track your purchases and keep you in line with any financial goals.
Fannie Mae has a 5 year time until you can pull out another loan so just keep at it and you will be in a new home in no time. Not only will you be living in your new dream home, but you will proud and accomplished for getting there.
The hardest part about starting, is starting. So lets get started!
Next is to make sure you look at your past behavior. How we spend is just as important if not more than how much we make. Most of us can into the habit of spending more as we make more. We end up at the same place as before. To stop this cycle I would start managing your finances with a sight like Mint. They have a free service to track your purchases and keep you in line with any financial goals.
Fannie Mae has a 5 year time until you can pull out another loan so just keep at it and you will be in a new home in no time. Not only will you be living in your new dream home, but you will proud and accomplished for getting there.
The hardest part about starting, is starting. So lets get started!
- Jennifer Henning, "HomemakersRealty"
- Contributions:146
Hi Shilom:
Start working on paying all your bills on time, paying of credit cards and other debt. Stay at your current job. Don't make any more large purchases like cars, or anything that would create a revolving credit account. I'm sure in time... they used to say 7 was the magic number... you should be able to purchase another home.
Remember what got you into the foreclosure situation to begin with and don't let it happen again.
Good Luck!
Start working on paying all your bills on time, paying of credit cards and other debt. Stay at your current job. Don't make any more large purchases like cars, or anything that would create a revolving credit account. I'm sure in time... they used to say 7 was the magic number... you should be able to purchase another home.
Remember what got you into the foreclosure situation to begin with and don't let it happen again.
Good Luck!
- Justin Kennedy
- Contributions:692
Please check to make sure you are not impaired by a lenders deficient judgment or phantom debt concerns for state and federal income taxes. These are items that are usually not addressed at the time of foreclosure and can cause major problems.
Currently, FHA time frame is 3 years form time of foreclosure. We can only expect underwriting to continue a contraction. Good rule of thumb, it is imperative to have no late payments to any creditor after your foreclosure, you will need to open 3 new trade lines and have them open and rated for minimum of 12 months, and have a timely rental history that can be verified thru canceled checks.
- Scott & Marla Wynn, "WynnTeam"
- Contributions:79
FHA allows you to obtain mortgage financing three years after the deed is recorded on your foreclosure. This can be looked up in your county's public records, typically online.
If your foreclosure was an FHA mortgage you may have a claim with the government called a CAIVRS. If this is the case, you will have to pay this claim prior to obtaining an FHA mortgage. A lender will have to look this up for you.
Over the next few years it will be very important for you to work on rebuilding your credit. You can do this through current loans and revolving accounts or by opening new accounts. It is important to make payments on time and to keep accounts open.
If you have more questions on rebuilding your credit, please re-post and I'll be happy to share more. If you need to obtain secured credit cards to begin this process, I can share my recommendations.
If your foreclosure was an FHA mortgage you may have a claim with the government called a CAIVRS. If this is the case, you will have to pay this claim prior to obtaining an FHA mortgage. A lender will have to look this up for you.
Over the next few years it will be very important for you to work on rebuilding your credit. You can do this through current loans and revolving accounts or by opening new accounts. It is important to make payments on time and to keep accounts open.
If you have more questions on rebuilding your credit, please re-post and I'll be happy to share more. If you need to obtain secured credit cards to begin this process, I can share my recommendations.
- sunnyview
- Contributions:25120
There is some more information on waiting periods here and a more recent article from cnn here. Banks may look at whether you were a strategic defaulter who could have paid but didn't or someone who walked away with extenuating circumstances and figure that into your timeframe
Honestly, only time will tell how banks really respond. They say one thing now, but who knows what their guidelines will really be in a few years when they want the fees from a wider pool of clients again.
Honestly, only time will tell how banks really respond. They say one thing now, but who knows what their guidelines will really be in a few years when they want the fees from a wider pool of clients again.
- Melissa Loughridge Savenko, "Melissa_Savenko"
- Contributions:225
A foreclosure is as damaging as a bankruptcy, in terms of your ability to purchase a replacement home. It will take 7-10 years before you will be able to qualify for either government backed loan products or conventional loans. A short sale is a much less damaging avenue to an underwater home owner. Typically, an individual can qualify for a new home loan after two years.
- shilom29
- Contributions:3
Okay! Thanks for the infor!
Does anyone know about any properties for rent in the Little axe area?
Does anyone know about any properties for rent in the Little axe area?
- sunnyview
- Contributions:25120
I think i read that it takes a minimum 2-3 years to be able to qualify again as long as you have a good enough credit score. Work on your score now, save up for a down payment and give it some more time. You should be able to buy in a few years.
- UB Home Team, "UB Home Team"
- Contributions:5031
In time, yes. Time is the 'unknown' in this equation.
We just recently forclosed on our house, is there any hope that we will be able to buy a another?
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