CHAPTER 19 A Guide to Searching for the Right Home
After facing foreclosure and dealing with your financials, you might not be ready to buy a home in the near future, but when you do, I want you to be prepared and have all the tools you need to make sure you have a successful experience. Here is a short guide. Hold on to this book and consult it when you’re ready to begin your next home search.
BUYING A HOME IN THE FUTURE
The good news is that foreclosure does not kill the dream of future homeownership. In fact, it’s common for a former homeowner to see a future mortgage after a foreclosure. Of course, it will take more time and prove more difficult, yet it’s not unheard of. Even if a bankruptcy wasn’t involved in the loss of your home, most lenders require a waiting period before considering a loan application from an individual whose home was foreclosed. If foreclosed owners can explain the extenuating circumstances were beyond their control, the waiting period could be shorter. Possible mitigating factors include death, illness, job transfer, or an accident that results in severe injury. If extenuating circumstances have been documented, the number of years you have to wait for a conventional loan could be directly affected. A federally insured Federal Housing Administration (FHA) loan is considered one of the best options for obtaining a mortgage after foreclosure. The minimum amount of time required between completion of foreclosure until approval of an FHA 167
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