There is life after a foreclosure. Regardless of the reason behind the foreclosure, you can purchase another home eventually, though it probably won’t be as simple as purchasing your first home. Mortgage lenders require a mandatory waiting period between the foreclosure along with your getting a new mortgage. Using this time sensibly will help you when the time comes to buy another home.
Document the circumstances of the foreclosure. Some foreclosures are outside the control of the homeowners. Lenders look for extenuating circumstances like loss of work, illness or injury of a principal wage earner or death of a primary wage earner. Some creditors consider divorce an extenuating circumstance.
Pay all of your bills on or before the given date. Reestablishing your credit is the most important thing you can do before you buy another home. It is particularly important to keep tabs on your payments. If you use a check to cover your rent, keep a copy of it. The new mortgage lender will want to guarantee you have not been late on any home payment since your foreclosure.
Get ready to pay a higher rate of interest and supply a larger down payment when purchasing your next home. The sooner you purchase a home following your foreclosure the higher your down payment and interest rate may be. Save as much money as you can for this payment: this will show the lender you’re serious about paying your next mortgage.