Closing on a home is one of the greatest moments in some people's lives. They imagine having family and friends under the roof, and bringing babies home to the home. When financial hardship results in the foreclosure of a home, it can be heartbreaking.
Victims of foreclosure should not let that heartbreak last forever and ruin them for home ownership in the future -- if they want that again. Owning a home again is an option, but that option is possible through planning and hard work.
Repair foundation for home loan eligibility
What did it take for you to get the home loan you needed for your past home? You probably had a certain healthy credit score in order to get approved for a mortgage loan. What was that score? What might it take for you to get back or close to that?
Despite the initial fear that a foreclosure will permanently wreck your credit score, consumers honestly can bounce back relatively quickly. FICO reports that as long as other debts and credit accounts are handled responsibly, someone who's gone through foreclosure can repair their credit rating in as little as two years.
Repairing a credit score requires the use of credit and the timely payments to credit accounts. Lenders want to see that you have a credit history, and a recent history of meeting your financial obligations. A final note: not all lenders will approach the approval of a home loan in the same way. Do some research, meet various mortgage lenders, and you will more than likely find a pathway toward home ownership again.
While life after foreclosure can still be full of opportunity, losing a home is something to try to avoid. Work with a foreclosure defense lawyer who can help you navigate the options out there and try to save your house before it is too late.