Foreclosure in Chico>Question Details

Chicohouse, Home Owner in Chico, CA

How long after losing your house does it take to rebuild your credit to buy another one?

Asked by Chicohouse, Chico, CA Mon Nov 15, 2010

mom & I bought a 1953 3 bed/2ba home on .24 acre for 209k. 6% Pymnts $1490 with taxes/insurance included. Now she's been overdrafting and not able to pay her half for last 5 months and expecting me to pay full amount. I'm wanting out of deal because she is not will to stop spending. If we turn over keys(there is no 2nd) balance is 186k, I know my credit will take a big hit, it's currently at 600 due to medical bills. Unable to refinance till I get it up to 620. This house would not sell for the 186k we owe, and I have family I can live with for only $400 a month so I would be saving over $700 a month to leave here. It would take me 2 years to save $15000 for a down of a house of my own. I have bills all paid off now, how long will it take me to rebuild it up so I can buy a house on my own? Been on job 12 years. Just got a visa to start rebuilding credit. Wondering if I should get 2nd job to keep this house on my own, or let it go and get something more affordable in 2 yrs.

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Lenders are loosening their belts now, seeing more flexibility in lending.
Jan Davis
0 votes Thank Flag Link Wed May 14, 2014
If you lost your house, filed bk or did a short sale at least 12 months ago, my lender has programs to help you get a bank loan now! You are welcome to Email me for her contact details

0 votes Thank Flag Link Fri Oct 11, 2013
the credit will take you a couple of years to rebuild, however, u will not be able to purchase to any band selling the note to the secondary mortgage for at least 5 years
0 votes Thank Flag Link Wed Nov 17, 2010
Foreclosure will hurt your ability to purchase another home for 5-7 years. The amount of points your credit get hits varies for case to case and the lender who processes the credit flaw. The typical hit I have seen is 200-300 points. However, the best way to address you question is through a independent source that suggests a less harsh hit. See the attached article:…

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee
0 votes Thank Flag Link Wed Nov 17, 2010
Before considering turning over the keys, do protect yourself and any other assets you may have and consult with an attorney who specializes in real estate--most professionals do offer a free consultation--or if money is tight, contact your local Legal Aid Society for a pro bono attorney--free, or contact the local Bar Association.
0 votes Thank Flag Link Tue Nov 16, 2010
rebuilding your credit isnt as hard to do as many would like you to believe. its in the best interest of salespeople, and creditors for you to have good credit so that they can keep making commissions off of you. credit has several different variables and with the right moves, you can foreclose on a property and have your score back in the 700's within 2 years. my friend short sold one home, and foreclosed on another (both in the same year) and currently has a 700+ score. so dont be afraid to do what is in your best interest.
0 votes Thank Flag Link Tue Nov 16, 2010
A foreclosure will stay on your credit for 10 years. I recommend speaking with a Real Estate Lawyer, to really find out the legalities. You can also short sale which in some cases is not as detrimental as a foreclosure. Email me if you are from Chico and we can talk.
0 votes Thank Flag Link Tue Nov 16, 2010
Foreclosure is on credit for 10 years - It will be at least 5-7 years before a bank would consider approving you for a loan . This is if your credit is squeeky clean - and you have excellent credit to that point.

A short sale is preferable. You will be locked out of the market for 3 years.

Good Luck!

Gerry Dunn
Associate Broker
Serving Maryland, D.C. and Northern Virginia
301-651-8600 - A few minutes ago
0 votes Thank Flag Link Tue Nov 16, 2010
A foreclosure can stay on your credit up to 10 years. There are far better choices than just giving teh house up to foreclsoure. You can ask tehbank to renegotiate your onterest rate in the form of a loan modifciation, You can ask your mom to go to a conselor as she may not know you are serious or you can sell through a short sale whoch is better than a foreclsoure.

Please see my blog with tips and advice on a short sale
0 votes Thank Flag Link Tue Nov 16, 2010
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