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OK, but this still doesn't answer your question. One can only hope that underwriting guidelines are relaxed a little for at least those people that completed at least attempted and/or completed a pre-foreclosure sale. At least these people took a proactive approach to letting their lenders know there is a problem that a temporary fix won't help. I do stress that everyone should stay in contact with their lenders. I know they are scary and the last people that you think you would want to speak with, but believe me, they may have an option. If you have to miss a few payments due to an illness or short term financial problem, there will probably be an option for you. If it is more long term, but still less than a year there could be an option for you. If all else fails and you feel that you won't recover from the financial hardship such as a loss of income to death or divorce, then a pre-foreclosure sale is an option. This is much better than blatantly ignoring your lender and not sending them any money until they foreclosure which could take 6 - 12 months or sometimes longer in our state. I'm not sure there will be any future change to an underwriting guideline that will foregive home owners that did that at least in the short term. As it stands now, to be approved for an FHA loan a foreclosure must be at least 3 years old with no others late payments on your credit report in the most recent 12 months. That really isn't a long time to wait for a foreclosure to be put behind you and move on to another home purchase.
And that may not be all bad. Some of the people who lost their homes should never have bought in the first place. Self-employed, stated income, 100% financing, option ARMs, offering 5%-10% above the listing price...and on and on. Many weren't qualified to buy. Some had no idea what they were agreeing to. Others were banking on continued skyrocketing appreciation. There's plenty of blame to go around. But the point is that some of these people were really not qualified to buy in the first place. And they may still not be qualified to buy. For them, renting is an acceptable option.
And if these people want to buy, there are always ways. Lots of ways. Lease-option. Lease-purchase. Contract for deed. Land contract. Equity sharing. Subject to. In fact, a lot of investors buying the foreclosed properties are willing to sell, or will be soon, using lease-options, lease-purchases, contract for deed, and so on. In fact, right now, I (and many investors) am having a much harder time finding people who want to buy using lease-options than I am finding owners who'd be willing to sell their house via lease-option.
The opportunities are still there, even for people who've lost their homes through foreclosure.
I have investors write offers on those homes, purchase them as short sales, and then rent them back to the current owners, or look fornew tenants.
For the people who are already out, they can rent, and my investors currently have some renting from them - it works out well. Typically they can not get aloan, soi he will land contract or lease option the home to them instead.
We specialize in PRE-forecloures homes, and helping those people find places to go after they sell, our website is below if ou have any questions.