Buying a house after foreclosure may seem like an impossible task with the current meltdown in the financial markets.
It will be difficult but with hard work and discipline you can become a home owner again.
Use these 7 tips to get you back to credit worthiness.
Determine the cause of the foreclosure to begin with. This may seem obvious but some people just don’t seem to understand that you must learn to live within your means. If lack of medical insurance caused the problem figure out a way to obtain insurance before you buy another house. Order copies of your credit report and review them. Dispute any incorrect items and contact any creditors that you still owe and work out a repayment plan. Write down every dime you spend for 30 days. Include innocent items like lattes, parking, and eating out. Figure out a way to cut down on your expenses so you can begin to save for a rainy day fund that will pay all of your monthly obligations for at least 90 days, preferably 6 months. If you still have installment notes or credit cards make sure you pay all of your bills on time so that you do not damage your credit score any further. If the problems that caused your foreclosure are now behind and you have followed the above outlined steps you should consider a rent to own or lease purchase program that will allow you to move into a house of your choosing and begin the house buying process. Quality lease purchase programs or rent to own situations will allow you at least 2 years to rebuild your credit scores so you can qualify for a mortgage. The better programs will also have credit counseling services that will help you rebuild your credit. The current mortgage guidelines (Sept. 2008) require that you are 4 years removed from a foreclosure. This may change if the financial crisis is solved soon.
Your current credit score was not made over night and the rebuilding of your credit score will not be any quicker. Be patient but persistent in your efforts to correct your situation. You can be a home owner again.
By: David S. Harrison