SO YOU LOST YOUR HOUSE TO FORECLOSURE. WHAT WILL YOU DO NOW?
Maybe it was because of a job loss or divorce. Maybe there was a medical issue. The fact remains, you’re starting over and it might not be anything you did wrong. A lot of people are in a similar situation. The good news is, as a boomerang buyer, you’re in a unique position to bounce back and reenter the ranks of successful homeownership. With a new set of tools and industry knowledge, you can get back into your dream home.
WHAT’S IN YOUR TOOLBOX?
Because you’ve been down this road before, you know what to expect in the home buying process. You’re not likely to make new homebuyer mistakes you may have made when buying a home before. You already know about points and how to …show more content…
If you’re frugal now, you’ll benefit later with extra money in the bank and being able to pay down more of your debt. You don’t want to appear to be a credit risk to lenders right now. Build a history of timely repayment.
CONSIDER RENTING
If you’re still in the house that was foreclosed you might consider staying for a while. Learn about the Freddie Mac “REO Rental Initiative”. It gives qualified individuals a chance to pay rent on a month to month basis on the foreclosed property until the house is sold. This is a great option if you need time to find another place to live. The home must meet certain criteria for health and building codes and there are a number of qualifications to meet as well. It helps with the transition of relocation. It also ensures that the banks have an excellent tenant until the house is sold.
The housing crash meant a lot of homeowners suddenly became renters. If you rent after your foreclosure, look for a landlord who participates in Experian’s “RentBureau program”. Timely rental payments are reported and can also help boost your credit score. Also be aware that renters are attractive to mortgage backers and some lenders. That puts you in a position to buy
Maybe it was because of a job loss or divorce. Maybe there was a medical issue. The fact remains, you’re starting over and it might not be anything you did wrong. A lot of people are in a similar situation. The good news is, as a boomerang buyer, you’re in a unique position to bounce back and reenter the ranks of successful homeownership. With a new set of tools and industry knowledge, you can get back into your dream home.
WHAT’S IN YOUR TOOLBOX?
Because you’ve been down this road before, you know what to expect in the home buying process. You’re not likely to make new homebuyer mistakes you may have made when buying a home before. You already know about points and how to …show more content…
If you’re frugal now, you’ll benefit later with extra money in the bank and being able to pay down more of your debt. You don’t want to appear to be a credit risk to lenders right now. Build a history of timely repayment.
CONSIDER RENTING
If you’re still in the house that was foreclosed you might consider staying for a while. Learn about the Freddie Mac “REO Rental Initiative”. It gives qualified individuals a chance to pay rent on a month to month basis on the foreclosed property until the house is sold. This is a great option if you need time to find another place to live. The home must meet certain criteria for health and building codes and there are a number of qualifications to meet as well. It helps with the transition of relocation. It also ensures that the banks have an excellent tenant until the house is sold.
The housing crash meant a lot of homeowners suddenly became renters. If you rent after your foreclosure, look for a landlord who participates in Experian’s “RentBureau program”. Timely rental payments are reported and can also help boost your credit score. Also be aware that renters are attractive to mortgage backers and some lenders. That puts you in a position to buy