Posted on: 02nd Jun, 2009 07:50 am
Thank you Jenkins7 and Mr. Springard. Mindtaster here. I have been called many things over the last year but no one has called me a "friend". It's comforting to know there are still very good and decent people in the world. You both confirmed what I had been thinking. My question is now, after all the dust settles, when they take back my house, my divorce is over, and the economy turns around, will I be able to buy a house again? I know my credit is shot, will this situation haunt me forever? Or if I could save some money and put down say $10,000.00, is it possible to find a lender for my mortgage or will the interest rate be out of sight for me? I was very diligent in paying all my bills, I still am, (obviously those I can pay), but I'm no spring chicken. I just want to leave my children something, so many people are in the same situation, can they shut us out of the market? In the last year I lost everything I loved except my children, I know I am not alone. Will I ever be able to but a house again? Any advice would again be greatly welcomed. Thank you, Cory.
cory, there is absolutely light at the end of the tunnel. "no spring chicken" doesn't mean anything except that you've accomplished much by surviving for a while - don't let that stop you. it may take several years to overcome what appears to be a foreclosure action against you (i don't recall previous posts you've left, so forgive me if i'm wrong, please), but it is not a life sentence chaining you to some sort of bad credit pole.
in the interim period, continue to do what you have been doing, which is to pay the bills that are a regular part of your life. in that way, you can rebuild a credit rating that will be favorable once again. typically, you'll find that lenders (today) require a 4-year period after a foreclosure before you're eligible to borrow again for a home purchase. keep in mind that we're encountering changes in guidelines on a continuous basis, so that may change many times as well.
don't give up hope, however - keep working at it and you'll see success after a while. interest rates, when that day dawns, should be market rates - not especially higher than anyone else. you may find a minor penalty against you if your credit score remains below a particular threshold. honestly, what that will be is anyone's guess, and we now know that people in the mortgage industry are notoriously bad guessers.
in the interim period, continue to do what you have been doing, which is to pay the bills that are a regular part of your life. in that way, you can rebuild a credit rating that will be favorable once again. typically, you'll find that lenders (today) require a 4-year period after a foreclosure before you're eligible to borrow again for a home purchase. keep in mind that we're encountering changes in guidelines on a continuous basis, so that may change many times as well.
don't give up hope, however - keep working at it and you'll see success after a while. interest rates, when that day dawns, should be market rates - not especially higher than anyone else. you may find a minor penalty against you if your credit score remains below a particular threshold. honestly, what that will be is anyone's guess, and we now know that people in the mortgage industry are notoriously bad guessers.
Yes, as Gmakerly said, there is light at the end of the tunnel, make sure you manage your credit cards, do not go over 30 - 40 % of your limit, keep a small balance on them and pay on time each month to help rebuild your credit. As far as the down payment, with FHA you only need 3.5% of the purchase price of the home to put down so once your credit is repaired I feel confident that you will be able to find a mortgage banker or broker that can help you into a new home. Good luck and hope you recover from the negatives that have occurred in your life.
