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What steps should he take in rebuilding his credit and purchasing another home?

2007-06-22 14:08:47 · 6 answers · asked by Anonymous in Business & Finance Renting & Real Estate

6 answers

Definitely! Credit will need to be rebuilt. It takes time, but payments made on time, a good debt to income ratio, low limits on credit cards, few credit cards and time. I used to be an L.O. and we did mortgages 2 years after foreclosure.

2007-06-22 14:13:27 · answer #1 · answered by Anonymous · 1 0

His credit will be bad for many years and he will always have to answer yes if they ask about prior foreclosures. If he has credit cards and pays them and car loans on time for a few years his credit score will improve. He should save a large down payment so this doesn't happen again and he will probably get a higher interest rate that someone without a foreclosure.
If he has equity he should sell before it is foreclosed if not he will still owe on the old mortgage after they sell the home and charge him fees.

2007-06-22 14:15:47 · answer #2 · answered by shipwreck 7 · 0 0

If your friend files bankruptcy they should be able to buy a new home in 2 years, providing they repair their credit, also, if the bank loses a lot of money on the sale they may 1099 your friend and the loss to the bank becomes income to your friend. If they do not file BK the wait could be up to 8 years, however with the market tanking as bad it is, it might not be that hard to find a seller who will carry a loan with little or no money down.

2007-06-22 14:34:13 · answer #3 · answered by delux700 1 · 0 0

Of course! The bank sells the property and take out what they are owed, then the remainder (Capital gain) is credited to the person or persons who's name appears on the deeds. So the debt to the bank has been cleared! Have a good day. Capital gain is the difference between what the house was worth when first purchased, and what the house has gained in monetary value when sold by the bank.

2007-06-22 14:24:43 · answer #4 · answered by wheeliebin 6 · 0 0

yes he will, but he's gonna have to put down 20-30% and perhaps wait a full year from the date of his Foreclosure.

I'm a mortgage broker. If he can come up w/ 30% now, I can get him into a new home immediately! If not, he's gonna have to wait a year, get his score higher and hopefully qualify for a 90% loan.

to rebuild his credit he needs to not be 30 days late on any car loans, credit cards, etc. If he doesn't have any credit cards, he can get some small balance cards to build credit.

If you've got any more questions, feel free to email me at tzaimes@yahoo.com

always remember......Time Heals All !!!! best of luck!

2007-06-22 14:16:03 · answer #5 · answered by tom 2 · 0 0

you may have the potential to get an FHA loan after 3 years from date of foreclosure. additionally, in the advise time, verify you pay all your debt on time. distinctly your hire. they'll choose to work out on time cancelled exams for hire for a minimum of 12 months. the best thing about FHA loans is that the fees are generally decrease than usual fees, and you will get right into a house with almost not something out of your pocket. To be elementary, you would be greater helpful off renting for the subsequent 3 years than attempting to purchase a sparkling abode. The interest value you will pay would be rediculous.

2016-11-07 06:11:19 · answer #6 · answered by ? 4 · 0 0

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