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Has anyone ever bought a house after a foreclosure?

Our home went into foreclosure and we're moving into my parents house. We plan on saving as much money as possible. We hope to be able to buy another house in like a year to a year and a half. I was wondering if anyone has ever purchased a home after having a foreclosure on their credit score.

Thank You.

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Anonymous

Asked by Anonymous at 4:50 PM on Jul. 6, 2010 in Money & Work

Answers (4)
  • My mom works in the mortgage industry and she's told me that you have to have a very large down payment to qualify after a foreclosure and will still end up getting a high interest rate because you are considered very high risk.
    jamesonjustines

    Answer by jamesonjustines at 4:53 PM on Jul. 6, 2010

  • Loans have changed so much in the past year it is scary, I am a real estate closer so I know first hand what's going on. As to qualifying for a new home loan with a foreclosure on your history, it will be tough. but doable. You need to be debt free and do not make any mistakes on your credit. Payment history is a biggie. No lates and no over 30days...Better go online and get a copy of your credit report from all 3 credit agencies and start clearing up what you can, when you can. lenders will also look for any medical collections as well. You also have a 1 yr right of redemption meaning if you have the money, you can redeem your house for what it was lost at. An real estate attorney can help you do this. No options of help with your current lender?? I am so sorry this has happened!
    ShelbysHope

    Answer by ShelbysHope at 4:59 PM on Jul. 6, 2010

  • I am a mortgage processor and deal with a lot of people that have gone through foreclosure. You will not need a large down payment, 3.5% will do fine as long as the rest of your credit is in line. Also you will need to wait 3 years to get financing.
    Kari126

    Answer by Kari126 at 6:20 PM on Jul. 6, 2010

  • Kari is right, no one will touch you for 3 years, and you need to have good credit and money saved because the way this industry is going, there is no way to know what will be available and doable in 3 years
    mamakirs

    Answer by mamakirs at 2:07 PM on Jul. 7, 2010

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