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Can I get a home loan after foreclosure?
Submitted by Deanna
from
- 04/10/2008 - 4:47pm
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.
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