How long to wait to APPLY for a loan post-foreclosure? (mortgage, mortgage)
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How did you maintain a 755 credit score w/a Foreclosure in 2011?
Koale
I can't answer for the poster you're referring to but when my husband filed in 2013, the BK didn't affect his credit that much. He was advised to - and did - include ALL debts in it but in reality, the *only* debt he was behind on was the house. All other accounts were current. He actually received some really great, 0% interest offers only a few months after the BK was discharged... transferred the other balances into it, and paid them off quickly, at 0% interest. When that was done, his credit perked right back up to where it was.
Going through the same for a short sale - 4 years. I was told by multiple lenders that the longest they can keep an application without pulling credit report again is 4 months, and they eoukd still require financials throughout the 4 months, so they recommended starting the application process 3 months before the short sale registration on the comptroller's office - which for us was about 17 days after the official closing.
Thanks very much for the info. This is exactly what I wanted to know. I will certainly ask this question specifically.
Why anyone would want another loan after they "suffered through a foreclosure" is beyond me.
Seriously?
So I should be content to live in a rental house for the rest of my life because of a foreclosure during the middle of the housing crisis - when thousands of other people had the same problem?
Should someone who lost their high-paying job during the Great Recession be happy with working at McDonald's for the rest of their lives, too?
The best advice I could probably give is suggesting you might re-evaluate whether the 7-year "seasoning" time truly is "stupid", as you say, or whether perhaps you just call it that because you don't see it as working in your favor.
My guess is the banks implement such a policy because it helps protect the both of you and helps to prevent the type of mishap you experienced in 2011 from recurring over and over.
But idk, maybe it is stupid.
I was just about to say the same thing. Your financial mistake cost someone else some money, and honestly—you should have to pay for it.
I was just about to say the same thing. Your financial mistake cost someone else some money, and honestly—you should have to pay for it.
By someone else, do you mean a giant corporation that had a very large hand in creating the housing market bubble in the first place? Call me selfish, but I guess I just don't feel that bad about costing a multi-billion dollar company a couple of bucks. Maybe that's just me...
The 7 year rule is in place for a reason -- to give people a chance to get back on their feet following a financial catastrophe. Make no mistake -- mortgage companies HATE foreclosures in your past. Good for you on your good credit scores, but let's face it, a lender is looking at history, and yours has a HUGE black spot on it. You'd have better luck if you had had a Chapter 13, but had been able to keep your mortgage payments current. As it is (their reasoning), they know that you've bailed on a mortgage before, and are prone to do it again.
At 7 years + 1 year, you may be able to get a conventional loan, but the terms will not be terribly favorable -- higher interest rates, etc. At 7 years + 2 years, the terms will ease.
I see the mortgage industry sliding back into the kinds of loans that got them into the same problem they experienced in 2007, easing back on the foreclosure rules for FHA, 100% financing with special programs, etc., etc. I just shake my head, and try to counsel my clients not to buy over their head.
And the fact that you don't feel too bad about costing a large corporation "a couple of bucks" tells me enough about your integrity that I'm pretty much done with this thread. Good luck.
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