Essay on Solving The Foreclosure Crisis Of Foreclosure

834 Words Oct 15th, 2014 4 Pages
If you are known as a “boomerang buyer” someone who has lost their last house from a foreclosure after the economy dropped out from under our feet. Now you have steadily put your life back together, including a nice size nest egg, a large savings account and now you are ready to get back into home ownership. How do you become a homeowner when your foreclosure hasn’t dropped off yet? There are a few options for you to consider; rent-to-own, foreclosure forgiveness, FHA loans or hiring a Broker is just a few. Banks used to look at foreclosures as a black mark on your credit, however with the 2008/2009 crash; they don’t look at them as harshly as they once did. A few things to consider about these three options are:
Rent-to-own: Is a term where you are buying the house from the seller but you are doing it on a contract and the sellers are still financing the loan. This possibility can be used to give you time to make sure your credit is 100% perfect and give you time to build up a down payment, due to many banks want to see you have a 10% down for your down payment. The contract between the seller and the buyer can range from the full amount of the mortgage or an amount that is above and beyond the current mortgage. A reason that the new payment arrangements could be above the current amount is due to the fact the seller is now the landlord and if any improvements need to be made the seller wants to make sure that it will be covered and not an unexpected expense.…

Related Documents