Comments on: Does a foreclosure elimate any possibility of ever purchasing a home again?

By: foreclosurefish_com

foreclosurefish_com — Mon, 11 Feb 2008 18:59:45 +0000

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

By: ebosgramma

ebosgramma — Sat, 09 Feb 2008 01:32:06 +0000

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.

By: gjohnson9894

gjohnson9894 — Tue, 05 Feb 2008 21:31:40 +0000

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.

By: sdn90036

sdn90036 — Tue, 05 Feb 2008 18:20:31 +0000

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.

By: Prophet 1102

Prophet 1102 — Mon, 04 Feb 2008 00:31:30 +0000

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.

By: jimmy d.

jimmy d. — Fri, 01 Feb 2008 10:00:21 +0000

Good bet for at least 7 years!