Buying a Home After Foreclosure

Buying a home after foreclosure may be possible but if you try to do so very soon after, then the terms you'll be able to get will not be very good. In fact, most conventional lenders will turn you down because they will view you as a risk that they are not willing to take.

Cooling off Period

Foreclosure rates are at an all-time high. Many of these foreclosures are not through the fault of anyone in particular. Primarily it's just bad circumstances of the times. There are some foreclosures happening however due to the unscrupulous practices of some lenders.

The best possible thing you can do after a foreclosure is to work on rebuilding your credit over a period of say, 2 years. You can then start looking for a lender who may decide to work with you based on that information, as well as your income and other criteria of course.

The reason you want to concentrate solely on rebuilding you credit during that time frame is because even if you did find a lender willing to work with you so soon after the foreclosure, the interest rates and terms are going to be out extremely high for a real estate transaction.

Waiting Periods

Many lenders will require that you wait for a certain period time before they will consider a new application from you. During this time frame, you will be expected to keep your credit record as absolutely clean as possible.

These time periods will vary greatly from lender to lender, but generally speaking, they will ask that you wait for anywhere between 2 and 7 years before applying.