You do have some options to get a mortgage loan after foreclosure. Chances are you story goes like this: You saved and worked hard to earn the money to buy your home. You did without so you could someday have the home you have always wanted.
When you finally moved in to your dream home, you looked forward to the day it would all be paid off and your home is all yours. Sometimes this dream becomes a nightmare, however, and you cannot make your payments so your home goes into foreclosure.
If this has happened to you, you might think you are doomed to a life of apartments and rented homes. You cannot imagine that you will be able to get another mortgage loan from a reputable lender after you lost a home to a foreclosure process. This is not true! You do take quite a hit to your credit when your home goes into foreclosure and it will take awhile to recover but you do have options for a mortgage loan after foreclosure.
How long until you can get a mortgage loan after foreclosure?
You will have to work harder to find a good loan but you can get mortgage loans after foreclosure. You do need to wait awhile before you try to get a mortgage loan after foreclosure. It is a good idea to take some time to get your finances back under control and let the dust settle from the hit to your credit score.
If you wait about two years before you apply, you may be able to get a mortgage loan after foreclosure.
You need to figure out how to improve your financial situation and that means figuring out how you got to where you are now. You may have had an unexpected situation like a divorce, illness or a job loss, in which case, once you get past that situation, you can move on and get your finances on track.
You may have spent too much money on credit cards and loans that you could not pay back. If that was the case, two years should be long enough to get the debts paid off and get on a budget.
Paying off debts before applying for mortgage loans after foreclosure
During the two years, you should pay off as much of your debts and spend as little as possible buying only necessities. Make sure you pay everything in a timely manner. The more money you can save, the better so you will have a down payment for a new home purchase.
In two years and when you are out of debt, you will be ready to talk to lenders about a mortgage loan after foreclosure. You will have to talk to a many lenders possibly since some will not want to work with you when they see the foreclosure on your credit report.
Eventually, you will find a lender who sees that you have worked to improve your finances and you have a down payment ready. If you have been through foreclosure, do not give up on the idea of having a home again. You can get a mortgage loan after foreclosure.