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That depends on your starting credit score. If you allow your home to be foreclosed or if you sign a Deed-in-Lieu of Foreclosure. Home owners will take a hit of about 250 points on their FICO score. This means if a their FICO score before foreclosure was 680, it could dip as low as 430. A home owner who wants to buy another home after foreclosure will end up waiting about 24 months before a lender will offer any kind of interest rate that makes sense. During that time you must have a near perfect credit.

The affect of a short sale on a home owner's credit report is much less damaging. The negative on credit may show up as a pre-foreclosure in redemption status, which will result in a loss of around 80 points from the FICO score. It can also simply show up as the loan was paid off and not affect your score at all. This means a short sale with a previous FICO of 680 could possibly see it fall to around 600 or it could remain the same.

There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.

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โˆ™ 2012-04-14 14:53:33
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Q: Can you get a home loan after having a foreclosure?
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Related questions

Does home foreclosure effect your ability to get a federal stafford loan?

No, it does not


Will the bank sue you if you foreclose on your home loan?

Yes, the bank will sue you if you default on your home loan and place your house in foreclosure.


Will a foreclosure on a construction loan have the same effect as foreclosure on an existing home?

Short Answer: Yes. You signed paperwork on the construction loan that would be very similar to the final loan. They will foreclose and sell the house at a sheriff's sale.


WHAT is a stand alone second mortgage and what happens to it when a home goes to foreclosure?

A stand alone second mortgage is another loan that is taken out against your home when the first loan is still in order. If your home goes to foreclosure, you will still owe this money as well.


When a bank seizes and sells a home to get as much of its loan back as possible?

That is known as foreclosure.


How can a you get help to stop for eclose of home?

There are many resources to help you with foreclosure prevention. You may have heard of HAMP which is a government based free resource to help you prevent foreclosure on your home through a loan mod. However having to prevent foreclosure on my own home I have found that the best resource for this is to educate yourself on the foreclosure process. I really helps to understand your rights as a homeowners and what the mortgage lender can and cannot do.


Who do you contact when scammed on loan?

Personal loan for foreclosure


Where can one get a loan to stop a home foreclosure?

When facing foreclosure, the first thing to do is to try to get a loan from your current lender. If that fails, try getting a loan from other lenders such as Fannie May and Freddie Mac. If that fails, turn to private lenders.


Can you get a home equity loan without having a home?

No.


If you are behind on your mortgage will they keep your insurance claim?

If your home is in foreclosure then yes they apply it to the loan balance in the event you loose your home.


Is tax on continuing a second mortgage deductible after filing for a first foreclosure?

Even if you have had a foreclosure, tax on a second mortgage or home equity loan is still deductible.


How soon can you get a home loan after you have had a foreclosure?

Each lender is different. Contact the lender of your choice for that lender's policy.


What is the purpose of an equity home loan mortgage?

An equity home loan mortgage is similar to a second mortgage where it is possible to borrow on the equity of a home. This helps reduce financial pressure like facing a foreclosure on a home.


Can Back taxes loan companies take your home?

Yes they definitely can because if you don't pay your taxes your home will go for foreclosure


Are you liable if your spouse has a foreclosure but your name is not on the loan or the final deed when it was signed back to the bank?

The liability in foreclosure comes from the responsibility for the mortgage debt. Regardless of your legal ownership or interest in the home, you do not have liability for the mortgage debt if you are not a party to the loan (did not sign). The home is the collateral for the loan and can be foreclosed and sold as recourse when the loan goes into default. While everyone who has an interest in the home loses their rights to the home when it is foreclosed, the liability for the loan and any negative actions associated with that (collections, lawsuits, negative credit reporting) belong solely to the signers on the loan.


Does home foreclosure effect ability to get student loan?

In the US, no your eligibility for student loans is not dependant on credit or income.


If you file chapter 13 and have a foreclosure are you still able to obtain financing for a home?

Absolutely, there are many programs available to assist existing home owners as well as home buyers with financing home loans after bankruptcy and foreclosure. To obtain a home loan while currently in a chapter 13 bankruptcy it is very important to establish a good payment history. The company that will approve you for a home loan will need to have your payment history. They will also contact the trustee of your chapter 13 bankruptcy to receive permission or an ok to proceed with your home loan. To obtain a home loan after chapter 13 bankruptcy you will need to provide the following to your loan officer. Original schedules of your bankruptcy Discharge documents of your bankruptcy Proof that you have a satisfied discharge Proof that you have established new credit To obtain a home loan after a foreclosure. Maintained or established new credit Applying for an FHA Home Loan there is a waiting period of three years after the foreclosure proceedings have been completed. For Conventional Home Loans you will need to wait five years. Frank Thomas Sr. Loan Consultant www.lowermymortgageratestore.com 480-621-4270


What is the Fannie Mae foreclosure law?

how many days delinquent before a loan goes into foreclosure


What are some of the requirements for a home loan?

The minimum requirements to qualify for a home loan are having the down payment, having limited debt, having a good credit history, and having stable employment. The better a person stands with these requirements, the greater they have of obtaining a home loan and getting a low rate.


What is a pre foreclosure?

A pre-foreclosure property has a delinquent loan and the owner is in imminent danger of losing his home due to foreclosure. His property has been listed as delinquent and will soon be taken into the custody of the lender. Buyers may be able to obtain a pre-foreclosure for 40 percent less than the home's market value, and the deal would close quicker than would a foreclosure.


Alternatives to Foreclosure?

Foreclosure can really hurt your credit score and make it harder for you to get a loan for a car, another home or anything else you may need. The good news is that there are alternative to help keep you out of foreclosure and keep your home. One of the best options for those who are at immediate risk of default on their home loan is a mortgage modification. A modification can lower your monthly payment, stretch out the life of your loan and even reduce the balance owed on your mortgage to help make your monthly payments more affordable.


How can one stop home foreclosure?

The best way to stop home foreclosure is to keep up with the repayments on the mortgage. If this is not feasible, it is worth speaking to the loan company as they may be willing to alter the terms of the loan, thus preventing foreclosure from taking place. If this is not possible, it may be worth seeking legal advice (pro bono, probably) as there may be legal recourse available (mis-selling of loan, for instance) that may enable the terms to be changed, or in the best (if not slightly unlikely) case, the loan may be fully or partially written off.


What does the term foreclosure mean?

The term foreclosure means that when a loan is not paid on time, the lender has the authority to take action on the collateral assets the borrower listed to secure the loan.


Could a pending foreclosure cause a bank loan to be declined?

Yes, if one got the loan after foreclosure proceedings began. When banks make credit decisions, they want to consider as much up-to-date information as possible. If a foreclosure is coming up but is not on the credit report, the bank may grant the loan. Once the foreclosure shows up on the report, the bank will conduct due diligence and see if they would have granted the loan knowing about the foreclosure. Most banks would not and will call the loan, making you responsible for paying immediately.


If foreclosure proceedings are started but the loan was reinstated will it show negatively on a credit report?

Yes. Foreclosure proceedings do not begin in most states until you are a number of months behind in payments. That will negatively impact your credit report. I had foreclosure proceedings begin on my home, but I was able to short sell the home before it went to auction. On my credit report it says, "loan was paid for less than amount owed".