Is There Life After Foreclosure?
September 3, 2008
Is there life after foreclosure? Can I get another mortgage after I have been foreclosed upon? How does a foreclosure affect my credit? These are the questions that homeowners ask themselves, and many do not have the answers
Unfortunately, foreclosures are not an uncommon occurrence these days. Nationwide Foreclosure Filings for the Second Quarter of 2008 Increased 14% from the Previous Quarter.
According to Rich Shapiro, from the Asset Mortgage Group, you will have to wait five years from the date of foreclosure to qualify for a Fannie Mae mortgage. The prohibition period for Federal Housing Administration (FHA) loans is a little more lenient — just three years. Also, if the foreclosure was due to “documented extenuating circumstances beyond the control of the borrower” you could be considered by the FHA in less than three years. The extenuating circumstances would generally have to be something like a death or grave illness and you would need to fully document the situation for the underwriter’s review.
As is the case with all mortgage loan agencies, good credit needs to be re-established. Consult with a mortgage professional about your particular circumstances — you might find that you can get another loan sooner than you expected.
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