How to buy a home after bankruptcy or foreclosure

Buying a Home After Foreclosure Going through a foreclosure or a bankruptcy is difficult process and is emotionally tolling. It takes time to recover from those and people who have gone through that have doubts about when and if they can buy a home again.

The good news is that you can buy a home again after going through that process. The bad news is that it takes time, persistence and will. It is possible to get back on the horse and become a homeowner again, by making a financial plan and stick to it. It doesn’t happen overnight, it is a good idea to see a qualified credit counselor or a financial planner to get the best advice for your situation to set a plan and goals to stick to.

Check periodically to see what’s in your credit report, is the official site to view what is being reported at the three credit reporting agencies. If there is anything there that shouldn’t be there or is being reported incorrectly then you need to work on fixing it now, rather than later when it starts to affect your ability to obtain credit.

Keep some available credit open. Once you pay off a credit card, do not close that account. Part of what goes into your credit score is how much of your available credit you are using. If you start closing accounts as soon as you pay off the charge, then you could be hurting your credit.

Save regularly, by putting a little bit into savings every month, you are proving that you can plan and stick to it and it shows that you are planning ahead for the future. You can also use the savings that you accumulate towards a down payment on a home.

Cash Is King

Cash is King. An old phrase, but still valid today. If you have the cash to buy a home, then you do not need a mortgage and therefore don’t have to worry about your credit and financial history.

Generally it takes years to be able to buy a home after a foreclosure or a bankruptcy. If you were able to do a short sale on your home and avoid a foreclosure, most often, it is about two years until you can buy a home again.

Contact Erna and Petur Sigurdsson, Realtors at The Viking Team, Realty at 321-263-5096 for help buying or selling a home in Longwood, Lake Mary, Altamonte Springs, Sanford, Seminole and Orange County and the surrounding areas of Central Florida. To Search For Homes For Sale in Central Florida Click Here.