Posted on January 12, 2009 - by admin
Does a foreclosure elimate any possibility of ever purchasing a home again?
Agustin A
My house may go to foreclosure and if i file bankruptcy it will stall this but if I dont sell the home then I will have two strikes a bankruptcy and a foreclosure on both my wife and my credit record. Im thinking of allowing it foreclose but can I ever buy again and will I have to repay the difference on my foreclosed home when the bank sells to buy again?
Bulgarian Properties
My house may go to foreclosure and if i file bankruptcy it will stall this but if I dont sell the home then I will have two strikes a bankruptcy and a foreclosure on both my wife and my credit record. Im thinking of allowing it foreclose but can I ever buy again and will I have to repay the difference on my foreclosed home when the bank sells to buy again?
Bulgarian Properties
This entry was posted on Monday, January 12th, 2009 at 07:01 and is filed under USA real estate. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
Visit My Website
January 15, 2009
Permalink
Good bet for at least 7 years!
Visit My Website
January 15, 2009
Permalink
You will be liable for the balance of the loan and any fees the bank incurs following reposition. So you can’t just “walk away”. You’re better off selling it - even at a loss - and continue to make payments to the mortgage company. Do it now before you go into bankruptcy.
Yes your credit will be screwed up for a long time. That doesn’t mean you won’t be able to buy another house, just your interest rate will be higher, and they’ll require more down payment.
Visit My Website
January 16, 2009
Permalink
The answer is “no.” You can buy a house again even if you have a foreclosure on your record. It’s not going to be easy and you’ll probably have to put more money down and pay a higher interest rate, but it’s very possible. People do it.
Do everything you can to improve your credit rating.
Pay your bills on time. Pay your creditors what they are owed.
If you are still having money problems consider speaking with a bankruptcy attorney. If you file for bankruptcy you could have a fresh start. (Certain debts, such as child support, student loans, court ordered fines and taxes cannot be discharged in bankruptcy.)
Good luck.
Visit My Website
January 17, 2009
Permalink
It will be more difficult for you to get a loan in the future, and very hard for you to get the more attractive deals, but it does not make it so that you can never get a loan again. Then again, if your credit is crappy already, this will make your borrowing future very bleak.
I do not know what the answer to the repayment situation is - check with your bank/lawyer/financial adviser.
Visit My Website
January 17, 2009
Permalink
The bankruptcy will be the worst thing on your credit history. Filing bankruptcy at this point should stop the foreclosure. It probably will not even show up on your credit as a foreclosure simply as a bankruptcy write off. You will begin getting credit offers after 1-2 years and if you rebuild your credit you could own a house again in 5-7 years. You may not qualify for the best interest rates but it will be a start.
Visit My Website
January 18, 2009
Permalink
You can buy a home again after foreclosure, but it will not be easy.
If the bankruptcy is just a temporary solution, and you are unsure of your ability to sell the house, it might be better just to take the foreclosure. Get an appraisal done now and find out if you owe more on the house than it is currently worth. It you are underwater, then a bankruptcy that you can’t afford won’t be an effective solution to the problem.
And you’re right: having a bankruptcy and a foreclosure in quick succession will look very bad to creditors. You’ll have to spend a lot of time working on your credit report, getting old negative information removed, and establishing a positive history after foreclosure.
The bank will probably not come after you for a deficiency judgment, if that is something you are worried about. The bank isn’t collecting anything now from the mortgage or from the foreclosure, so there’s no reason for them to spend the time and money to sue you again. You probably won’t have the financial ability to pay tens of thousands of dollars in judgments after foreclosure, so why would the bank waste its time? In fact, it won’t waste its time.
It might take a few years to qualify for a mortgage after this foreclosure is done, but it can be done. Don’t expect to get a 100% financed house, though. You’ll need to show you have a significant down payment, plus a savings account, plus stable income. Without those three things anyway, you probably shouldn’t buy a house in the first place.
Use this time after foreclosure to start repairing your financial situation. That’s the best you can do for now, and within 1-2 years, you can probably apply for a new mortgage if you’ve saved up enough for a down payment.
Good luck.
ForeclosureFish