Posted on: 08th Feb, 2013 12:21am
Foreclosure affects your credit score badly. It shows up on your credit report for around 7 years. If you have past records of foreclosure, then you are treated as a risky borrower by the lenders as you have high chance of default. In such situation, you have to wait for several years to refinance your mortgage loan. The length of the waiting period depends upon the type of the loan you want to refinance.
There may be some relaxations in some extenuating situations such as serious illness, death of a wage earner etc which may lead to foreclosure. In such situations, lenders may offer some relaxations in the waiting period.
FHA loans
FHA loans are guaranteed by the Federal Housing Administration (FHA). FHA is responsible for insuring nearly one-third of the mortgages in the country. In the event of default, the FHA comes forward for rescuing the lenders. Anyways, you have to wait for at least 3 years for FHA loan refinance after foreclosure,Conventional loans
These loans are owned by the government-backed institutions such as Freddie Mac and Fannie Mae. For conventional loan refinancing after foreclosure, you have to wait for 7 years.There may be some relaxations in some extenuating situations such as serious illness, death of a wage earner etc which may lead to foreclosure. In such situations, lenders may offer some relaxations in the waiting period.
hi there, i need help! we had a vacation property which had to let go into foreclosure. this was around 2 years ago. now, i own a primary residence in another state whose value is around $1.1m and i have a mortgage on it of $279k with 4.75% fixed rate. i have a good income and never missed any mortgage payments. the foreclosure 2 years back did not affect my score. but i am still not able to refinance my primary home mortgage. what are my chances? do i have to wait one more year before trying again?
There's no question of a refinance after a foreclosure. It's more like you need to take out a new mortgage. However, 3 years is the minimum time required before you can take out one. Make your bill payments on time and try rebuilding your credit in the meanwhile.
Jessica,
Great post.Answers most questions on how long it takes to get a mortgage after going through a foreclosure.
It is also important to note that during the 3 year waiting period one needs to work on improving their credit for instance by paying their debts on time, taking a credit card and paying on time etc.
Great post.Answers most questions on how long it takes to get a mortgage after going through a foreclosure.
It is also important to note that during the 3 year waiting period one needs to work on improving their credit for instance by paying their debts on time, taking a credit card and paying on time etc.
no, you cannot refinance a home loan immediately after foreclosure. refinancing is taking out a new loan in order to replace the existing one. if you want to qualify for refinance after foreclosure, you will have to wait for at least 3 years or more than that. you need to know that lenders will not agree for mortgage refinancing before that time.
The above post has been made by Kate Kelley.
I agree with the posts above that one cannot refinance a home loan after a foreclosure. But if you wait for at least a period of three year then you may do so.
The Mortgage rules are changing. Consult with a mortgage lender you trust.He will help you in analyzing the options that best suits for you situation.
I have excellent income and have repaired credit by 100 points in a short time how likely am I to get a mortgage?
I have excellent income and have repaired credit by 100 points in a short time how likely am I to get a mortgage?