Foreclosure in Statesville>Question Details

Regina Cooper, Other/Just Looking in Statesville, NC

How long, after you go through a forclosure, do you have to wait to buy another house?

Asked by Regina Cooper, Statesville, NC Sun Jul 11, 2010

My husband and I went through a forclosure this year. The reason for the forclosure was because we were paying almost $1000/mo. and his hours at his job were cut. so we couldn't afford the payments any longer.

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My husband and I went through a forclosure this year. The reason for the forclosure was because we were paying almost $1000/mo. and my husband got really sick and was hospitizied for about a month and his hours at his job were cut as well, in his job if does not work he does not get paid his job is contract and does not offer benefits so we couldnt afford the payments
0 votes Thank Flag Link Thu Jan 3, 2013
I would focus on improving your credit and paying off what debt you may have left. It might be good to get in touch with a credit counslor to assist you and develop a plan to start saving for a down payment. The shortest time frame before you can buy a home through normal chanels with a convential or FHA loan is 3- 5 years.

However, you may be able to find someone to sell you a home on a land contract because they will not have the same restrictions as a normal underwritten loan. Be careful if you go this route because you need to make sure you understand the implications with a land contract.

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwukee

http://www.milwaukeebailout.com
0 votes Thank Flag Link Mon Jul 12, 2010
Regina,
You are definately not alone in your situation. Yes, as the others have said, a lender will probably require at least 3 years before they will consider lending to you but there may be help for you if the foreclosures keep up at the current pace. Lenders may be forced to look at making loans sooner to people that have lost their homes to foreclosure because there are so many out there. It may be necessary in order for the housing market to fully recover - Only time will tell.... Another option for you may be to search out a lease purchase or owner finance option. These are becoming more popular as lenders tighten their guidelines. You will need to have a pretty good down payment and interest rates may be higher, but it could be an option for the short term. Hang in there, things will improve soon.
0 votes Thank Flag Link Mon Jul 12, 2010
Here is the real answer, straight up from the mortgage industry guru Fannie Mae, Yes that company the government had to take over because of their poor standards of giving out bad loans before.
The reason lenders have to follow these standards is that almost every loan ends up sold and most of them are to Fannie Mae.

All forms of foreclosure stay on your credit report for 10 years.

After you have gone through foreclosure, short sale or deed-in-lieu-of-foreclosure there will be what is known as the "waiting period", this period of time varies for each and can be reduced if you had some type of extenuating circumstances that caused the foreclosure:
Waiting Periods to Buy After Foreclosure – “YES” Short Sale and Deed-in-lieu-of are forms of foreclosure
• Buying after a Walk Away Foreclosure
The waiting period is 7 years
• Buying after a Foreclosure
The waiting period is 5 years with 20% deposit up to 7 years.
• Buying after a Foreclosure with Extenuating Circumstances
The waiting period is 3 years with 10% deposit up to 7 years.
• Buying after a Deed-in-Lieu-of Foreclosure
The waiting period is 2 years with 20% deposit, 4 years with 10% deposit up to 7 years.
• Buying after a Deed-in-Lieu-of Foreclosure with Extenuating Circumstances
The waiting period is 2 years with 10% deposit.
• Buying after a Short Sale
The waiting period is 2 years with 20% deposit, 4 years with 10% deposit up to 7 years.
• Buying after a Short Sale with Extenuating Circumstances
The waiting period is 2 years with 10% deposit.

In addition to the waiting period and minimum down payment, you will be required to have a minimum FICO score and the home purchase must also be the principal place of residence, not a rental nor a vacation home.

Want to get your life back in order and into a home? Want to live in your future home while we get you approved? We have a program that does just that “gets you approved”. “Get Started Now” and cut your “waiting period” in half. Visit http://www.MortgageTrainingProgram.com for more information.

Good Luck
Bob Patrick
Buy a home after foreclosure expert
0 votes Thank Flag Link Sun Jul 11, 2010
Regina:

Thanks for your post, and as Yanni said below, you are not alone in this situation, and, sooner or later, in order to fully provide economic recovery, there will have to be programs out there for the vast majority of homeowners who have lost their homes through economic hardship and not foolish investment.

At present, however, homeowners who have lost their homes in foreclosure will probably be ineligible to purchase another home for about 3-5 years depending on your current FICO scores--post foreclosure. Although this seems like a long time, it is a time period where you can fix your credit and save money to purchase a new home. Most lenders are looking at buyers to have at least 10-20 percent of the purchase price available to buy a home, so plan to save a sufficient amount to cover the downpayment and closing costs.

Good luck!!

Sincerely,
Grace Morioka
Area Pro Realty
San Jose, CA
0 votes Thank Flag Link Sun Jul 11, 2010
First of all you should know that many people in the u.s are going through the same thing. I'm sure someone will come out with some kind of a program that can help you and many others out there to get financing to purchase a home.

I've heard on many programs that can help you to get financing out there and they're all about hard money lending.

Try to get a hard money lender to help you and you will see that now you will be fine.
0 votes Thank Flag Link Sun Jul 11, 2010
About 7 years, if you are lucky.

Doc
0 votes Thank Flag Link Sun Jul 11, 2010
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