Can I get a home loan after foreclosure?
Submitted by Deanna
from
- 04/10/2008 - 5:47pm
The house I bought 3 years ago was a big mistake. It is growing mold on the walls and frost on the inside of my daughters room etc. I just want to walk away and start out fresh. I don’t have any problems making the house payment. I have been saving my money for something different. How likely is it that I can get a home loan after foreclosure? I live in Minnesota
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Hi Deana,
It appears Minnesota allows deficiency judgements, meaning the bank can come after you for any difference between what they are owed and what the property sells for. The property will almost always sell for less as a foreclosure sale then if you sell it yourself. As such foreclosure should be your last resort. Get the house cleaned up the best you can and get it listed for sale. Try working with the bank on a short sale if you owe more than it is worth.
A year or two ago it was relatively easy to get a loan even 90 days after foreclosure. But lenders are learning their lesson from the current foreclosure crisis, and their lending standards are tightening daily right now. As such it is quite possible that it will be very difficult to get another loan until the foreclosure is off your credit report… 7 years.
Best Regards.
Very interesting article, was a good read. Thanks.
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I am currently trying to get a home loan, I had a foreclosure two years ago, due to losing my job. I am now having to purchase another home due to a member of my family becoming disabled and they are unable to climb stairs. Will it be hard to obtain a home loan with this foreclosure on my credit report.
Yes, I believe you will find it very hard to get financing after 2 years. That didn't use to be the case, but I think you should expect a minimum of 5 years now. See the following posted by one of our members:
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf
Hi Deanne I am looking to buy a home in minnesote if you let me know where it is located and price my e-mail sharon
sorry my e-mail is skyltc@hotmail.com
I live in fl we want to foreclose our home, do we have to pay bach the money.
If applying for a mortgage after a foreclosure, many traditional
lenders will not approve a loan request. For this matter, request
quotes from several sub prime or high risk mortgage lenders. These
lenders approve loans to people who have a difficult time securing
financing.
Hello,
I recently made an all cash offer on a loft ,that is owned by a bank, after finding out that the place alreday had an accepted offer. I am now waitig to see if the first buyers will lose the loan, not like what is on the inspection ext.. How likely is it that any of these scenarios will happen? There is a loan commitment date, if the buyer does not get this can the seller back out and take my offer?
Hello I am divorced since 1/08 the divorce was in status only which means all the financials still had to be worked out. my daughter and I moved out ot the home 3 years ago because my ex refused to. He stayed in the home and was making the payments. We are estranged. I found out in Jan'09 that he was moving out of our home. and the home was in foreclosure. My credit was decent. I have no credit card debt and have only a car payment (small) I make good money over 115K /year now my credit in ruined. There was no notification to me nor my attorney about the foreclosure. When I called the servicing company they said certified letters were mailed to the home and signed. Do I have any rights and would a lender ever consider me for a loan or look at my credit and history without the foreclosure on it?
It will be hard to find a company that will do it, but there are some loan companies that are more leniant and sensitive to cases like yours.
Do you have homeowner's insurance? You can get that mold removed by a water damage restoration company. Just look one up in your local area or visit water damage for help.
I understand how mold can cause you to consider just walking out and starting fresh, but having a foreclosure on your record will make your interest rates higher and make it harder to qualify for a loan.
If you have homeowner's insurance, contact your insurance company and see about getting a restoration company out that will remove the mold. There is definitely a flaw in the structure, and it could have started after you bought the house. Somehow, water is getting in, and it could be caused by a leaky pipe or just a hole in your roof. I think your best bet is to get it fixed rather than walk away.
This water damage company seems good: www.water-damage-services.com
Best of luck!
You should see an attorney about your mold problem. You may have a case against the builder or prior owner if they knew of the problem but did not disclose it to you...
yes you can get a new home after a foreclosure. if you can show a good income but also your interest rate will be high. There are mortage programs for you.
I had a foreclosure two years ago due to a bad loan but the rest of my credit is perfect. My score is 702 right now and I was wondering if anyone knows of a specific lender who will lend on this, even if it is a slightly higher rate.
You may need to look at a private money lender. Look for a mortgage broker in your area that has access to investors or hard money lenders. They can then tell you the terms. You will undoubtedly need to put more money down since they typically only lend to 60-70% max LTV and the points and interest rate will be substantially higher.
The house I was living in went into pre foreclosure.we sold the soon after.On our own. we paid off the loan and the second mortgage.This was 4 almost five yrs ago.how hard will it be to purchase another home.
Contact a local lender in your area. It will depend on your current credit scores and credit report. Once they run your credit and look at your verifiable income and assets they should be able to tell you how much you qualify for or what you need to do to get qualified. It sounds like you are on the right path!! Good luck!
I got divorced in 2006. My ex-husband kept the house (with my name still on it also). He never took my name off the title. Unbeknownst to me he had non-payments and went into foreclosure in 2008. Per our divorce decree, he was/is liable for that real estate. Is there anyway I can get the foreclosure off my credit? If so, what steps must I take?
Thanks, Chelsea
I am currently on the tail end of a very similar situation. I pursued this for several months to no avail. I sent copies of our divorce decree stating specifically on page 10 that my ex-husband was responsible for the real estate (house). I was told numerous times that unless he refinanced or sold that my name would absolutely remain on the mortgage, I was frustrated to tears. My current husband and I would love to purchase a home together and start a new life but I am stuck w/ this nightmare ruining my credit and chances for a loan. Good luck!
Unfortunately the bank is not going to remove your name off of a loan regardless of the divorce papers since you signed for the loan and the 2 of your were equally responsible for that debt. As long as your name is on the loan it doesn't matter who owns the property.
I would reach out to a good mortgage broker and explain your situation. Loan guidelines are changing all the time and maybe they have an investor that would consider a loan like this given all of your documentation. It may also be worth your time to see if you can qualify with just your new husband on the loan. At least you can have a loan officer look at your situation and see if they have any ideas.
My husband and I are trying to get a home loan after going through a foreclosure and some very bad financial problems in the last few years. He got a copy of his credit report and there were some mistakes on it, but some people online say to dispute the mistakes and others say not to dispute them because it could hurt your credit even more? Does anyone know which is right? Also, what if I got something like this: identity theft protection Do I even have to worry about the mistakes then or will the ID theft protection do that for us and notify the bank we’re trying to get the loan through? Any help is really appreciated. Thanks.
If you are working with a good loan officer they should be able to help you clear up any misinformation. I do not have any recent experience with disputing accounts but I do know that years ago people would play games with their credit report and dispute accounts so that the creditor would have to remove it temporarily while they investigated the matter. This then "could" cause the score to go up and the intention was to close on the loan before the disputed accounts re-appeared on the report. A few years ago means a lifetime ago since the lenders have tightened the rules and now look for things like this. I would caution you against playing any games but I would certainly correct anything that is being reported erroneously. If you are working with a good loan officer or mortgage broker they should be able to guide you in this matter. If you do not feel comfortable with their advice seek a second opinion.
www.naca.com what do you think of this?
Hi, Due to domestic violence I am planning to leave my husband and walk away from the home we are purchasing (out o fear for my well-being). I was told I should consider a chapter 13 bankruptcy so the mortgager wil not come after me, once the house goes into foreclosure. How hard will it be for me to get another mortgage? Will a lender look at my credit before and after (i currently have good credit, but it will tank once I leave)?
Thanks sandy
Hi Sandy,
There are several variables. Do you have one loan or 2? Are your loans purchase money loans or did you refi and pull cash out? You will want to consult with a bankruptcy attorney for more information. You may also want to consult with a realtor that has experience with short sales to also look at that option.
Although loan guidelines change everyday under the current FHA guidelines it would take approximately 3 years before you could quality for a home loan once you have had a foreclosure, short sale or deed in lieu. The rules for bankruptcy would depend on which chapter you file. A good loan office should be able to go over these details with you.
That said, there is no home or credit or any other physical item that is worth your mental health or physical health. Always remember that America is the Land of Second Chances. It doesn't really matter if you file BK or walk away from debt the key is to get your life restarted and take care of yourself.
The laws are different each state, but I believe that even with foreclosures, you can have the loan to help you in a negotiation
The laws are different each state, but I believe that even with foreclosures, you can have the loan to help you in a negotiation
Regards,
Tony
http://www.foreclosurelistings.com/
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