If you’ve been through a foreclosure, you are aware of the hassle and frustration associated with it. One day you were a home buyer, but for whatever reason, you were forced to give that up and lost your home. While some foreclosures simply aren’t avoidable, it doesn’t necessarily mean you won’t be able to own a home again soon. According to Dean Graziosi an important change in mortgage rules was just announced that could allow some home owners who were forced to foreclose the opportunity to apply for an FHA loan after just one year. This gives home owners another change to purchase a property once more.
There are many different reasons why a home owner might be forced to foreclose. A person in the household may lose a job, thus greatly reducing the amount of income coming in each month. Drastic cuts in salary also cause the same problem. Both of these situations can make it difficult, and in some cases, impossible for the home owner to actually afford the home. When this occurs, the lender will attempt to collect the money. When that fails, the home owner is in great danger of losing the property. So what do you do in a situation such as this and will you be able to buy a home again anytime soon? According to an article in Forbes, “Up to 2.5 million formerly foreclosed homeowners — or those who sold while in the foreclosure process — could be re-entering the housing market as buyers much faster than anticipated thanks to a recent change in Federal Housing Administration (FHA) guidelines.”
If you find yourself going into foreclosure, consider renting a home for much less than you were paying on your home. This will give you an opportunity to get back on your feet and begin saving money once again.
If you have lost your job or if your salary has been reduced, consider taking a second job to cover the expenses and make up the difference. Though this may take away most if not all of your free time, you’ll appreciate it on down the line. Again, you’ll be able to save more money. As Dean Graziosi also points out, those wishing to borrow money will be required to prove their income has increased since the foreclosure occurred.
Credit score also matters greatly in these situations. A potential home buyer must have an acceptable credit score again after the foreclosure to even be considered for a new loan. If yours has been damaged, begin building it up now. During the time you are out of one home and waiting for another, take the opportunity to pay off all existing debts. If you have already done this, but still find your credit score to be lower than what is deemed acceptable, start out small. Put money down on a secured credit card and begin rebuilding your credit from there. If you’ve been forced to file bankruptcy, you may wind up having to wait longer, but it never hurts to check to see what you can and can’t do.
Foreclosure means you are no longer able to afford the home in which you live, but it isn’t permanent. Save as much money as you can prior to and after the foreclosure and you just may find yourself in a new home before you know it. For more information on this and other topics, visit Dean Graziosi’s website.