Will I ever be able to buy again after a foreclosure?
Question:
Answer:
Most subprime lenders, no, forgive me, ALL subprime lenders will require 2-3 yrs seasoning of a NOD, Short sale, or foreclosure for maximum financing, 100%. There is no way around it. typically the less the seasoning, the lower the LTV or Loan to value. I spent 10 years as a manager and VP for several subprime companies and I know it like the back of my hand. The last lender to allow less than 2 years on a foreclosure for maximum financing is now defunct. Even the most aggressive lenders will barely allow for above 95% CLTV or combined Loan to value should you find a seller second. If you have a down payment your options become greater.
An option; take it for it what it's worth: Find a property with a seller willing to lease with option to purchase or carry the note. Lock him in at todays price for say 1-2 years and...record the transaction with your county. Pay with check each month and on time. After 12-18 mo. contact a broker and have him look at refinance options. Refinance?? I don't own the property, you say. In the eyes of the lender you do. So assuming you have enough equity in the property from what it's woth vs. what you owe the seller, you may find yourself able to refinance at a higher LTV. many will allow 85% and a few will go to 90%. Some will allow c/o, some limit you to 5k and others are strictly rate and term. The good news is you get another shot at home-ownership and with the refi, you build another credit trade.
Also, if possible, take this time to work on any other credit issues you face.
If you work to build up your credit, You should be able to buy again. You may have to pay a higher interest rate than the going rate, but that will be because you will be a higher risk factor.
It should be possible, and an owner-finance deal could be the best way to do it. In the meantime, pay your bills promptly, and pay off those credit card bills in full every month.
Yes you will be able to purchase you a home again. You may purchase a home through a mortgage broker that handle sub-prime lending. Most lenders will lend for you to purchase another house after foreclosure after 1 year. Now don't go in expecting the rate that you read about in the newspaper.
The time frame will depend on you. The further away your foreclosure is the better your scores and credit will be.
The main thing that you must remember about the interest rate no matter if it is a high rate or a low rate. The tax rate is deductible, so guess what you will get it back. Check with your tax preparer for tax advise.
The only thing about the rate is that your monthly payment will be a little higher.
If you have learned your lesson and the situation that caused you to get into foreclosure the first time no longer exist, jump back into the market as soon as possible.
If you listen to the naysayers you will be waiting 3-5 years before you purchase your next home. As soon as you can qualify, apply. Even after a foreclosure some lenders will go as high as 90%-95%.
I hope this has been of some use to you, good luck.
"FIGHT ON"
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