2006-06-06 02:57:14 · 2 answers · asked by Darren B 1 in Business & Finance ➔ Taxes ➔ United States
Although I am not an expert, I can tell you that foreclosures have the same affect on your credit as other negatives. It will remain on your credit report for 7 years & considerably reduce your credit score. Beyond that, most home loans are guaranteed by some entity, such as: FHA, VA etc. The actual money transacted comes from a lender. Once a default occurs, the loan is paid off by the guarantor & the lender doesn't care that you were responsible at that point.
Once the foreclosure is cleared from your credit report, there is no reason why a new mortgage would not be allowed.
Also, there are many ways to buy a house that may side-step normal rules. One is purchasing an owner-financed home, and another could be an assumption of an existing forclosure if the property is truly distressed & you are working directly with the guarantor.
In any case, forclosure is not the "end of the world".
2006-06-06 03:25:37 · answer #1 · answered by Anonymous · 1⤊ 0⤋
yes but it will be no less than 3-4 years after the fact
2006-06-06 03:15:32 · answer #2 · answered by golferwhoworks 7 · 0⤊ 0⤋