Recently I have had several inquiries regarding what happens after foreclosure? First I always attempt to encourage working with an HUD approved housing counselor. Secondly I do everything I can to assist in not letting the home go to foreclosure for the individuals sake and as my part in trying to stop the bleeding of these homes sitting on the market. If possible even a Short Sale of the home is easier on the individuals credit as well as the general neighborhood.
However if in the end foreclosure is inevitable....
Housing will become difficult, Owners and Landlords are most frightened of the tenants inability to make the rent payment. This is probably the number one fear among the sellers and landlords I work with. It takes a seasoned approach to display to a landlord the other factors that should be considered. Its not for the faint of heart and can be very frustrating.
Recently I had a client who due to divorce and job loss had pretty horrible credit. We spent months working on proof of her ability to pay and approaching landlords requesting rental agreements for her, after our 3rd turn down we found her current rental property. The positive side to these difficult times is to see her pull herself up and excel at her job. Since finding her the property to rent she has already saved 1/2 of what she will need for a down payment on her next home. To quote her " I will buy much more conservative this next time and I will always have a nest egg in my savings account " Her current landlord does not want to see her go. She will need a 3 year recovery before FHA will even consider lending to her again but she's accepting of what she must do to prove her stability and appreciative to the landlord for the opportunity.
If I can be of assistance or you have any questions on any of the below topics, please feel free to call.
- Short sale
- Representing the landlord
- Representing the tenant
- Buying and Selling
- Lender guidelines
- Housing strategies-(Cant sell for what I owe / what to do)