someone with a recent foreclosure. Again, there are some programs lenders may offer that will assist, but the list of qualifications will likely be pretty long. It is best to be realistic about your odds of obtaining a loan when a foreclosure is in the cards.
Short Sale
When a homeowner has mortgage debt that is worth x, and sells that mortgaged home for a price that is less than x, that is called a short sale. Home shoppers who recently underwent a short sale are in the same position as those with a recent foreclosure when it comes to attempting to obtain a mortgage. Lenders see short sales as a type of foreclosure, in that the previous lender gave the borrower a certain amount of money and the borrower didn’t pay it all back.
Vehicle Repossession
Banks take vehicle repossessions seriously and frown upon them in credit decisions. People need a car to get to and from work, and having a vehicle repossessed is a solid indicator that you are not financially responsible. This does not mean you can’t be approved for a loan, but it makes it more difficult. An otherwise stellar credit report will help a lot, but chances are good that if a person has had a vehicle repossessed, the rest of their credit report is likely shaky, as well.
Self-Employed Status
A self-employed buyer transaction is always challenging. Self- employed buyers will have their tax returns especially scrutinized, so a good lender will ensure that the self-employed borrower has clean tax returns for at least the previous two years. The lender must check the borrower’s tax information to ensure that the income requirements match. This is because self-
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