Tag: Foreclosure

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This Family Spent $6,000 to Save Their Home and Still Wound Up Facing Foreclosure

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Lageshia Moore of Far Rockaway, N.Y. says her family spent $6,000 in hopes it would save them from foreclosure. “Some people might say, ‘OK, just get a new house.’ But it wasn’t that simple,” says Moore.

When Lageshia Moore and her husband found their home in 2006, they thought it would be a perfect place to raise their family. The $549,000 Far Rockaway, N.Y., duplex even had future income potential if they could find a reliable tenant and rent out one half of the house.

In order to purchase the property and avoid primary mortgage insurance, the couple took out two mortgages to cover the costs.

Like millions of Americans who purchased homes at the peak of the housing bubble, their timing could not have been worse. Moore, a teacher, left her job in 2007. It soon became impossible to meet their $4,000 total monthly mortgage payments. By the summer of 2008, they were deep in default, and the recession sent their home value plummeting.

They were officially underwater on their house, and the family was living solely on Moore’s husband’s income as a driver. Eventually, they were notified that their lenders had begun the foreclosure process.

“Some people might say, ‘OK, just get a new house.’ But it wasn’t that simple,” Moore said. “This was the house where we were raising our family. My husband is very proud and homeownership means a lot to him — so we weren’t going to just let it go.”

Instead, Moore and her husband did what many families facing foreclosure do: They began looking desperately for “foreclosure relief” companies, law firms, and groups who promised help. A nonprofit connected them to a court-appointed attorney, but it didn’t stop the foreclosure process. So they turned to companies that advertised foreclosure relief on radio stations and online.

Over the course of six years, the family handed over thousands to a handful of relief groups they thought could stop the foreclosure. “We were desperate, and we thought, ‘OK, we’ll hand over this money to someone and they’ll just fix it,’” Moore said.

One of those foreclosure relief companies was Florida-based Homeowners Helpline, LLC. In 2015 the family gave the company a total of $6,000: an initial $2,000 down payment, and then $1,000 in four monthly installments. By that time Moore had found a new job, but the family hadn’t paid the full mortgage amount in years.

Moore shared the contract with MagnifyMoney, in which Homeowners Helpline says it will “perform a mortgage loan review and audit,” including actions like sending a cease-and-desist letter and a “Qualified Written Request” for information about the account to the family’s lenders.

Here’s what Moore says happened: Homeowners Helpline connected her family with a New York City lawyer who “kept asking for endless paperwork, month after month after month,” and who eventually stopped answering their calls, she claims. They finally got in touch with him just before the house was set to go up for auction, she said, and he told them the efforts to stop the auction had failed.

“We were horrified,” Moore said.

Homeowners Helpline told MagnifyMoney a different story. Sharon Valentine, a processor at Homeowners Helpline who worked on Moore’s husband’s case, said the family was slow to hand over needed paperwork and “unrealistic about their expectations.”

Crucially, Valentine said, the family didn’t tell Homeowners Helpline the house was actively in foreclosure until they mentioned the auction. “And then it was like, ‘Wait, what?’” Valentine said. The company would have taken different actions had they known about the foreclosure proceedings, she added.

“We can’t help you effectively if you don’t give us all of the information and the paperwork,” Valentine said. “In general, some clients come in and they hear their friend was able to get a 2% [mortgage] rate or cut their payments in half, and it’s like, ‘Well, that’s a very different situation.’ We try to help educate, but sometimes you can’t change that expectation.”

The Best Help is Free

But there is a free resource to educate panicked homeowners about expectations and provide foreclosure assistance — as well as help them avoid scam companies that will steal their money. NeighborWorks America runs LoanScamAlert.org, which aims to be a one-stop shop for people with questions about or problems with their mortgages.

The Loan Modification Scam Alert Campaign launched in 2009, when Congress asked NeighborWorks America to educate and help homeowners. LoanScamAlert.org offers resources including information about how to spot and report scams, and lists of trusted authorities who can help. Its main goal: Drive people to call the Homeowner’s HOPE Hotline, at 888-995-HOPE (4673), which is staffed 24 hours a day by counselors who work at agencies approved by the U.S. Department of Housing and Urban Development (HUD).

“We provide them with a single, trusted resource,” said Barbara Floyd Jones, senior manager of national homeownership programs at NeighborWorks America. “It gets confusing when you see companies with all of these similar names advertising on the radio or TV, and then you have to research them. We want to let people know they don’t have to pay a penny for assistance.”

Anyone — regardless of income or other factors — can contact the counselor network to receive free advice and help. Homeowners aren’t always aware of the myriad government-affiliated groups that can provide assistance, or of the federal and state programs created to speed loan refinances and modifications, Floyd Jones said.

“We can never promise that everyone will be able to save their home; there are a variety of circumstances,” Floyd Jones said. “But we can promise a trusted counselor will listen, take a look at your paperwork if you want, and tell you all of your options.”

In fact, if a homeowner grants permission, the counselor can contact the mortgage lender directly to discuss options to stop the foreclosure, modify the terms of the loan, or otherwise make a deal. If need be, homeowners will also be connected with vetted legal assistance — although Floyd Jones noted not every situation requires a lawyer.

True to LoanScamAlert.org’s name, the hotline counselors also take complaints about mortgage-related scams: third-party companies that take the money and run, or slip in paperwork that unwittingly gets homeowners to sign over the deed to the house.

The Federal Trade Commission received nearly 7,700 complaints about “Mortgage Foreclosure Relief and Debt Management” services in 2016 — down from almost 13,000 in 2014, but still a significant figure.

“Stopping phony mortgage relief operations continues to be a priority” for the FTC, said spokesman Frank Dorman.

Both the FTC and LoanScamAlert.org offer tips to avoid scams — and to make sure you’re taking advantage of all federal and state programs that could help.

Red Flags:

  • They ask you to pay before any services are rendered.
  • Pressure to pay a fee before action is taken, sign confusing paperwork, or hire a lawyer off the bat. As with any scam, fraudulent mortgage relief services rely on high pressure to push vulnerable homeowners into taking action. Companies shouldn’t ask for “processing fees” or “service fees” early in the process, Floyd Jones said, as early foreclosure-stoppage efforts don’t cost anything. Be wary of signing any document, as you could unwittingly surrender the home’s title or deed to a scammer.
  • They make promises they can’t keep. 

    Promises or guarantees they’ll save your home from foreclosure — or even claims like “97% success rate!” No one can guarantee results.

  • They say they’re affiliated with the U.S. government. 

    Companies that claim to have an affiliation with a government agency. Some scammers may claim to be associated with the government, charging fees to get you “qualified” for government mortgage modification programs like Hardest Hit Fund. You don’t have to pay for these government programs — and lenders, particularly big banks like Wells Fargo and Bank of America, may be able to offer you their own modification options directly.

  • They want you to send your mortgage payments to them.

    Companies that tell you to start paying your mortgage directly to them, rather than your lender. They may promise to pass the money along, but they could pocket it and disappear.Companies that ask you to pay them through unconventional methods: Western Union/wire transfers, prepaid Visa cards, etc., instead of a check. They’re trying to get your money in a way that’s hard to trace.

As for Lageshia Moore and her husband, the family ultimately filed for bankruptcy — a move that can stop the foreclosure process, but only temporarily — and are now working with a law firm on a loan modification she hopes will reduce their payments to a manageable monthly sum. In giving advice to others, she reiterates the simplest but most important tip: “Just do your research.”

“You’re panicked, but you have to do your due diligence,” she added. “Really sit down and weigh the pros and cons: foreclosure, short sale, etc. What does this process or contract really mean? It’s an emotional time, but you have to try to keep the emotion out of it. That’s what I would tell myself.”

What to Do if You’re Facing Foreclosure:

  • Call a HUD-certified counselor at 1-888-995-HOPE. You’ll get advice and help for free, and while counselors can’t ever promise to save a home, they’ll be happy to take a look at any paperwork or information about your case, contact your lender about options if you grant permission, and connect you with vetted legal assistance if need be.
  • If you’re not facing foreclosure yet, but you’re worried that you’re about to run into trouble, contact your mortgage lender’s loss litigation department. They may be willing to work with you. Your lender can also tell you whether you’ll qualify for government programs.
  • Overall, don’t let desperation stop you from taking the time to research any potential actions, including signing on with a relief company. Explore the company’s background and track record. Check online for reviews from other homeowners — and be sure to look up phone numbers too. Many scam companies simply shut down, reopen under a new name, and retain the same phone number.
Julianne Pepitone
Julianne Pepitone |

Julianne Pepitone is a writer at MagnifyMoney. You can email Julianne here

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Mortgage

The Guide to Getting a Mortgage After Foreclosure

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

mortgage after foreclosure

Introduction

If you’re among the one million homeowners who lost a home to foreclosure between 2007 and 2008, you may be starting to think about re-entering the housing market. If you went through a foreclosure during the earlier part of the financial crisis, it may no longer be on your credit report, and you may be qualified to try and become a homebuyer again.

If you lost your home more recently, along with five million other Americans between 2007 and 2014, it’s never too early to start preparing yourself for the qualification process. The three major credit reporting firms, Equifax, Experian, and TransUnion, begin reporting your foreclosure once a lender says you have missed your first payment, and you will have to wait seven years before it is removed. However, there are a variety of different mortgage options available, with varying eligibility requirements, and some have shorter waiting periods that you may be able to take advantage of if you qualify.

Here’s everything you need to know about qualifying for a mortgage after foreclosure.

What Will it Take To Get Approved?

Federal Housing Administration (FHA) Loans

Insured by the federal government, Federal Housing Administration (FHA) backed loans are often one of the first options foreclosed-upon borrowers turn to. Although bigger banks like JP Morgan Chase and Bank of America have restricted FHA loans by requiring very high credit scores, smaller banks have been more willing to lend to foreclosed-upon borrowers.

If you’ve gone through a full foreclosure and repaired your credit, you may be eligible for an FHA loan in just three years. Some borrowers have even been approved in as little as one year, although this is rare. According to Moody’s Analytics, about 1.2 million foreclosed-upon borrowers were approved for FHA loans after three years.

FHA loan programs vary from state to state, but they share common eligibility qualifications—minimum credit scores of 500-580 and a debt-to-income ratio of less than 43%. Plus, you’re required to make a minimum 3.5% down payment.

Although FHA loans require significantly lower down payments and look for lower credit scores than conventional mortgages, most loans are insured by mortgage insurance premiums, which will increase your monthly mortgage payment. Mortgage insurance premiums for 30-year mortgages cost 0.85% of the loan’s value, which adds up quickly for more expensive homes. And some homeowners are required to pay mortgage insurance premiums for the life of the loan. That’s why it’s important to carefully assess the full cost of your FHA mortgage.

FHA’s Back to Work – Extenuating Circumstances Mortgage Loan Program

Normally, you have to wait 3 years after foreclosure to be approved for an FHA fixed-rate mortgage. However, FHA’s Back to Work Program may help you qualify for a new mortgage in as little as one year after bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale. The program, which has been extended through September 30, 2016, offers families affected by the housing crisis and recession a second chance at homeownership.

How can you qualify? FHA will consider your eligibility if you’ve had a foreclosure but now meet the following criteria:

  1. You meet FHA loan requirements.
  2. You can document your foreclosure resulted from a financial hardship beyond your control.
  3. You have re-established a responsible credit history.
  4. You have completed HUD-approved housing counseling.

To begin the process, you will need to take a “Pre-Purchase Counseling” course with a HUD-approved housing counseling agency 30 days prior to filling out an application. You will also need to meet FHA’s loan requirements with minimum credit scores of 500-580 and a debt-to-income ratio of less than 43%.

Once a lender has determined you meet FHA’s requirements, you will be able to apply for a loan under the Back to Work program. You will need to explain how your financial hardship was caused by factors beyond your control — a reduction in income, job loss, or a combination of the two. These events need to have caused your household income to drop by 20% or more for a period of at least six months. Detailed documentation, like employment verification, W-2s, and tax returns, will be required to prove these events in order to qualify. Divorce, previous loan modifications, or the inability to rent an income property won’t count.

To re-establish a responsible credit history, FHA requires that you have 12 months of on-time rent payments. They also require that you haven’t been more than 30 days late on more than one non-housing loan payment. They also watch for collections accounts and court records reporting (with exceptions for medical bills and identity theft).

Fannie Mae Loans

Fannie Mae-backed loans have longer waiting periods for foreclosed-upon borrowers than FHA. The standard waiting period is seven years. However, extenuating circumstances may qualify you for three years.

Fannie Mae defines extenuating circumstances as “nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.” You will need to be prepared to provide your loan officer with an “extenuating circumstances letter” explaining why you had no reasonable alternatives other than defaulting on your financial obligations.

Fannie Mae requires a minimum credit score of 620 for fixed rate mortgages and 640 for adjustable rate mortgages. And they won’t accept a debt-to-income ratio of more than 43%. Fannie Mae loans require a 20% down payment.

Freddie Mac Loans

Similar to Fannie Mae loans, Freddie Mac also has a seven-year standard waiting period. Their waiting period for borrowers with extenuating circumstances is also three years.

In order to qualify as a borrower with extenuating circumstances, Freddie Mac requires your mortgage file to contain:
  • A written statement about the cause of your financial difficulties to explain the outside factors beyond your control.
  • Third-party documentation confirming the events detailed in your statement were an isolated occurrence, significantly reduced your income and/or increased expenses, and rendered you unable to repay your mortgage.
  • Evidence on your credit report and other documentation in the mortgage file of the length of time since completion of your foreclosure to the date of application and of completion the recovery time period requirements.

Freddie Mac also requires a minimum credit score of 620. They won’t lend if your debt-to-income ratio is above 43%. Freddie Mac loans require a 20% down payment.

Veterans Affairs (VA) Loans

Did you know 1 in 3 home-buying Veterans doesn’t realize they have a home-buying benefit? Depending on your length of service, duty status, and character of service, you may be eligible for a Veterans Affairs (VA) home loan after foreclosure. VA loans, guaranteed by the Department of Veterans Affairs, allow veterans and active military to bounce back more quickly after a foreclosure. The waiting period to be approved for a VA loan after foreclosure is only two years.

Once you have established you’re eligible, you will need a Certificate of Eligibility (COE) for your lender. This certificate will verify your eligibility for a VA-backed loan.

Veterans Affairs doesn’t limit the amount you can borrow. However, there is a limit to how much liability they are willing to assume, and this will affect the amount of money you can be approved for. Veterans Affairs’ liability is limited to the amount a qualified Veteran with full entitlement can borrow without making a down payment. Remember, these loan limits will vary by county, depending on the value of the home you are interested in.

If your income and credit qualifies, lenders will generally loan up to four times your entitlement without a down payment. Basic entitlements are usually $36,000 for eligible veterans. Although VA loans are more lenient on credit history than conventional loans, lenders generally look for a credit score of at least 620.

Non-Qualified (non-QM) Loans

For foreclosed-upon borrowers who don’t fit the standards for mortgages from Fannie Mae or Freddie Mac lenders, another product has emerged — non-qualified (non-QM) loans. These are a newer type of agency-alternative loan backed by hedge funds and private equity firms. The layers of risk associated with these loans are often secured by larger down payments or higher interest rates. The lender’s primary concern is your ability to repay, and many don’t require a waiting period for foreclosed-upon borrowers.

Ability-to-repay is an important aspect of qualifying for a non-QM loan, so most lenders will require income documentation. Depending on how much time has passed since your foreclosure, most loans require at least 20% down and adequate assets to cover reserves. You’ll find these interest rates are significantly higher than market rates.

A&D Mortgage, a private lender based in Hollywood, FL, offers non-QM products to foreclosed-upon buyers in their home state. They advertise that if there hasn’t been a judgement, you can apply for a mortgage as soon as you have settled your foreclosure.

Their loan periods are typically 24-60 months, with 7.999-11% adjustable interest rates. Down payments start from 30% and your debt-to-income ratio needs to be below 50%. Additionally, you should expect to pay standard origination and closing fees. A&D Mortgage is looking for credit scores of at least 500, and they will accept a loan-to-value ratio of up to 70%. The entire process takes a minimum of 5-7 business days once they have received your paperwork.

Another private non-QM lender, Angel Oak Home Loans, based in Atlanta, GA has a program specifically dedicated to serving foreclosed-upon borrowers with bad credit. Their program, Home$ense, was created specifically for homebuyers who were caught in the recession and mortgage crisis.

Home$ense allows you to begin the application process immediately after your foreclosure has settled. They offer 30-year fixed mortgages with interest rates of 5.5 percent to up to 9 percent, and they require a minimum 20 percent down payment.

These loans allow a loan-to-value ratio of up to 80% and don’t count late mortgage payments from the past 12 months against you. The average credit score of their borrowers is 670. Their loans are available for single-family residences, and they will approve up to $1 million for your loan.

Should You Wait to Qualify for an FHA Loan?

It’s easy to get caught in the excitement of purchasing a home, especially after a foreclosure. However, it may be smarter to exercise patience and wait 3 years to qualify for an FHA loan. This example illustrates why:
Non-QM
Credit score 620-639
Home price $200,000
Down payment $40,000 (20%)
Loan amount $160,000
Rate type fixed
Loan term 30 years
Interest rates 5.5 to 9%
Full cost of mortgage at 5.5% $327,046
Full cost of mortgage at 7% $383,214
Full cost of mortgage at 9% $463,463
FHA Loan
Credit score 620-639
Home price $200,000
Down payment $40,000 (20%)
Loan amount $160,000
Rate type fixed
Loan term 30 years
Interest rates 3.375% to 4.125%
Full cost of mortgage at 3.375% $254,647
Full cost of mortgage at 4.125% $279,158

Even without the full recovery of your credit score, it’s easy to see the differences in cost between these two types of loans. In addition to a significantly lower monthly payment, an FHA loan will save you a lot of money over the lifetime of the loan.

Comparing the Costs of Mortgages After Foreclosure

How much will a foreclosure affect your credit score? It depends on what credit score you started with. According to FICO, if your credit score is 780, a foreclosure will drop your score by 120-140 points. And if your credit score is 680, a foreclosure ding your score by at least 85-65 points. The higher your score, the greater of an impact your foreclosure will have. The lower your score, the less likely a lender will approve your loan, and if you are approved, you will probably be stuck paying higher interest rates.

Assuming your score has dropped to 620, here are a few examples of how much your mortgage after foreclosure may cost. These examples are for mortgages in Tennessee:

FHA Loan
Credit score 620-639
Home price $200,000
Down payment $40,000 (20%)
Loan amount $160,000
Rate type fixed
Loan term 30 years
Interest rates 3.375 to 4.125%
Total cost for interest at 3.375% $94,647
Total cost for interest at 4.125% $119,158
VA Loan
Credit score 620-639
Home price $200,000
Down payment $40,000 (20%)
Loan amount $160,000
Rate type fixed
Loan term 30 years
Interest rates 3.49 to 4.25%
Total cost for interest at 3.49% $98,328
Total cost for interest at 4.25% $123,357
Conventional Loan
Credit score 620-639
Home price $200,000
Down payment $40,000 (20%)
Loan amount $160,000
Rate type fixed
Loan term 30 years
Interest rates 3.75 to 4.875%
Total cost for interest at 3.75% $106,755
Total cost for interest at 4.875% $144,824

Remember, credit score, home price, and down payment will all affect your interest rates. It’s also important to ask about points, mortgage insurance, and closing costs, which are not included in these examples.

Deficiency Judgements: What You Need To Know

If you’ve had a foreclosure, you need to be aware of the risks associated with deficiency judgements. Many lenders will forgive deficiency through a short sale before foreclosure. But be aware that lenders have the ability to file motions for old foreclosure lawsuits and hire debt collectors to go after your remaining debt, court fees, and attorney’s fees, plus any interest that has accumulated.

Fannie Mae and Freddie Mac lenders are among the ones doing this, and they are specifically targeting “strategic defaulters.” In 2011, Fannie Mae and Freddie Mac went after 12 percent of the 298,327 homes they foreclosed on for deficiency judgements. Fannie Mae has hired debt collectors in 38 states and Freddie Mac has taken foreclosed-upon homeowners to court in 17 states.

In a press release, Fannie Mae explained how they have instructed lenders to monitor delinquent loans facing foreclosure and make recommendations for cases that may warrant deficiency judgments. Additionally, they pointed out that borrowers who worked with lenders may be considered for foreclosure alternatives like a loan modification, a short sale, or a deed-in-lieu of foreclosure.

How does a deficiency judgement work? If your home had a $250,000 mortgage, the value may have decreased to only $150,000 after the financial crisis. If you foreclosed at that point, and your lender sold your home at its current value, the $100,000 difference would be the deficiency balance. A Washington Post investigation uncovered a story of a Rockville, MD family who lost their home to foreclosure in 2008. Over three years after their foreclosure, they were taken to court by lenders to collect their deficiency balance of $115,000, which included three years of interest.

Although deficiency judgements are not a common problem right now, they could come back to haunt you once you’ve recovered from a foreclosure, secured a better job, and have started rebuilding savings. Deficiency judgements are still allowed in 40 out of 50 states, and the statutes of limitation range from 30 days to 20 years. You won’t know it’s coming until you receive a court notice, and many times your debt will no longer be with the original lender. Interest may become one of the largest expenses, especially if your debt is old. And once there is a judgement, you will be stuck paying it off.

In many cases, filing for Chapter 7 bankruptcy may be the only way out. And that option may not be available if you earn more than your state’s median income by family size. If that’s the case, Chapter 11 or Chapter 13 may be your only other options.

Should You Wait To Apply?

When you’re ready to own another home, you may be tempted to try and re-enter the housing market as quickly as possible. However, rushing into the home-buying process may not be the right choice.

First, you should figure out when the negative mark on your credit report is due to be dropped. Start by checking your credit report from each of the three credit-reporting firms, Equifax, Experian and TransUnion, through annualcreditreport.com. It’s free every 12 months, and these reports will show you exactly when your foreclosure was recorded.

When it comes to applying for a new mortgage, timing is key. If there are only a few months left before the foreclosure is removed from your credit report, you may benefit from waiting until the black mark is gone. When lenders check your credit reports during the application process, they won’t see your foreclosure.

However, if you still have another year to go, and you want a mortgage, you may not benefit from waiting. Interest rates are on the rise, and there’s no guarantee they won’t be higher than what you are able to secure earlier — even with a blemished credit report.

Keep in mind some applications may ask questions about previous foreclosures, so you may be required to disclose this information either way. And the information about your foreclosure may make a lender think twice about your eligibility.

So does it make more sense to wait? Here are a couple of examples comparing the costs for FHA loans:

Example #1
Credit score 620-639
Home price $200,000
Down payment $40,000 (20%)
Loan amount $160,000
Rate type fixed
Loan term 30 years
Interest rates 3.375 to 4.125%
Total cost for interest at 3.375% $94,647
Total cost for interest at 4.125% $119,158

This examples assumes your score has dropped to 620, you can afford a 20% down payment, and you’re looking for a 30-year fixed rate FHA loan in Tennessee. You have passed the three-year waiting period, but a foreclosure is still on your credit report.

Example #2
Credit score 720-739
Home price $200,000
Down payment $40,000 (20%)
Loan amount $160,000
Rate type fixed
Loan term 30 years
Interest rates 3.25 to 4.00%
Total cost for interest at 3.25% $90,679
Total cost for interest at 4.00% $114,991

This example assumes your score increased to 720 after your foreclosure was removed from your credit report. All other details are the same as the previous example. As you can see, the 100-point difference in credit score represents roughly $4,000 in savings over the lifetime of the loan.

Because interest rates are controlled by market forces outside of your lender’s control, you may want to think about how much rates may increase on their own within the timeframe of when you’re looking to qualify for a mortgage. We recommend using the Consumer Financial Protection Bureau’s interest rate tool as you are gathering data to make your decision.

General Tips On Being Approved For a Mortgage After Foreclosure

Regardless of which type of mortgage you decide to pursue, and the mandatory waiting period associated with it, cleaning up your finances will help the entire process go more smoothly:
Pay down all credit card debt

Paying your credit card debt off completely is one of the fastest ways to improve your credit scores. This type of debt compared to your spending limits accounts for 30% of your FICO scores. Once you’ve paid off your credit cards, you should see the change reflected in your credit score within a month.

Don’t apply for other loans

Resist the temptation of increasing your debt burden before applying for additional financing. This includes car loans, furniture loans, or appliance financing. Your debt-to-income ratio is one of the most important factors lenders look for when trying to determine your eligibility for a mortgage.

Avoid other blemishes on your credit report.

After your foreclosure, prioritize paying all of your bills or loan payments on time. You won’t want to begin the seven-year period of waiting for negative events to be removed again.

Conclusion

Losing a home to foreclosure can be a devastating experience, but you’re not alone. 7.3 million “boomerang” buyers who have lost a home over the past decade are preparing themselves to re-enter the housing market over the next several years. In fact, 25% of these foreclosed-upon buyers already have their foreclosure removed from their credit report. It’s important to take your time exploring all available options, selecting a program that best fits your current financial situation, and securing the best possible terms.

Our guide was designed to offer you a comprehensive overview of the options that are currently available, but it’s always a great idea to conduct a bit of your own research. With the large volume of borrowers seeking to re-enter the market in the next few years, additional options may continue to emerge.

Kate Dore
Kate Dore |

Kate Dore is a writer at MagnifyMoney. You can email Kate at kate@magnifymoney.com

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