Short Sale, Foreclosure, Bankruptcy, can I buy again?

Short Sale, Foreclosure, Bankruptcy can I buy again? You may think that you may never be in the position to buy a home again. However while your credit score will take a hit by the Short Sale, Foreclosure or Bankruptcy,  there is a light at the end of the tunnel if you wait long enough. It depends on the circumstances of all the above, and your ability to improve your credit score and the type of loan you apply for when you are ready to buy.

7 Years is the standard waiting period on a Forclosure on  a prior convention loan, 2 years from the completion date on an Va Loan and 3 years on an FHA loan, even though the record of foreclosure only stays on your credit report for 7 years, the new lender is going to be measuring risk. Such as have you increased your credit score and maintained good credit, have savings, etc.

You can improve your credit score by paying all your bills before or when they are due. You can also get a prepaid credit card from your bank in most cases, where you put in $300.00 or more which sets your credit limit, as you continue to pay promptly eventually the bank will raise your credit limit and in turn raise your credit score.

With a short sale or deed in lieu of,  you can purchase as soon as 2 Yrs after the completion date if you put 20% down payment on the new loan. 10% down is 4 years, and 7 years if your wanting a maximun loan to value loan.

Note on a short sale there is no restriction if borrower was current at the time of the short sale and the payments were on time  in the last 12 months prior to sale.

Bankruptcy,  if your prior home loan was convention and you do a chapter 7, its 4 years, if it was an FHA loan your waiting period is 2 years,

If you filed a Chapter 13 Bankruptcy and the prior home loan was convention it's 2 years. If it was an FHA loan  it can be as soon as 1 year with permission from the court.

If you had a VA loan prior to filing Chapter 13 it could be as soon as one year, if the payout was made satisfactory for the following  year and you get permission from the court.

So as you can see when you can buy depends on the prior loan you had and if you have re-established credit. But it is indeed possbile to own again.

If you would like more information on your particular situation, please give me, John Rucidlo a call at 602-550-1001 or email me at johnrucidlo@yahoo.com or if you are interested in viewing short sale properties or foreclosures. I can help you there as well.