People Buying Properties Again After Going Through a Nasty Foreclosure

After the housing bubble burst, many homeowners lost their homes to foreclosure. This was due to the fact that many people were buying homes they could not afford and ended up going underwater on their mortgages.

Today, about 4.8 million individuals have lost their homes to foreclosures. 2.2 million of them ended up selling their homes in short sales. This data comes from RealtyTrac.

However, although many are still struggling, there are those that are doing better than before. Foreclosure can take a toll on one’s financial situation but that doesn’t mean you can’t purchase a home again.

Actually, several homeowners are starting to reenter the housing market and look at new homes to purchase. It may be a stretch but the dream of buying a new home is possible, even after you’ve gone through something like a foreclosure.

Although it is difficult, you can look into purchasing a home again if you give it sometime. It is true that a foreclosure or a short sale can take away 85 to 160 points off a healthy credit score. This by itself can set anyone back. However, it can recover.

For instance, a couple in Palmdale, California named Susan and Dave Edwards, lost their home when Susan developed severe arthritis and had to pay an exorbitant amount of medical bills. It took the couple about two years but they got their credit score back on track through paying all their bills on time and being careful with spending. If they can do it, so can you!

The biggest provider of mortgages in the country is Fannie Mae and Freddie Mac. These two huge companies advise waiting up to at least five years after defaulting to think about buying a house again. They say that you need to have a score of at least 680 and be able to put at least 10% down on a property. It can happen quicker than this though if you make wise decisions.