Monday, 9 September 2013

Buying a Property after Foreclosure

Foreclosure is never a happy situation as you not only lose your precious home, but it also affects your credit rating badly. However, if you have gone through a foreclosure, it does not mean the end of the road for you. Although it may take a while to arrange funds and build your credit score before again buying a house, if you have planned your finances and investments properly, you can purchase a home for you again even after a foreclosure. Here are some ways through which you can be financially stable and convince the lenders that you are now in a much better condition than what happened 5-6 years back –

  • Getting back on the right track after foreclosure is very important as creditors apart from what happened in the past, are also interested in how you can repay the mortgage this time around. Securing a good job is a pre requisite as this will give an assurance to the lenders that you are not going to default again. A decent paying job will ensure that your lifestyle needs are being met and you do not have to rely on any other source for them.
  • Start saving money for the future. Once you have been through foreclosure, always think of the future and start saving money for it. The A foreclosed property on your books does have a negative impact on your profile. However, if you have saved adequate funds, you can present that to the creditors. By presenting more than required money for the down payment, you lessen the creditors’ risk and brighten your chances of getting credit for your home.
  • In case where the bank refuses to lend you any money, you can go to private lenders. Other option is to go for owner financed homers. There might be some formalities involved but keep these options open as well.
  • Getting a credit card is also a good option and you need to ensure that there are no defaults in the payments. This can prove to be highly valuable as you will have something positive to show to your creditors.

Moving after foreclosure may take some time, but you can definitely come out of it. Start afresh and keep your expenses and finances in check to build a better future.

No comments:

Post a comment