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How Long After Foreclosure Can I Purchase A Home ?
Most people are concerned that after a foreclosure they may never be able to purchase a home again. However, this is a huge misconception. A foreclosure does have serious side effects on the credit report but it is not that bad either. |
Every foreclosure will reflect for seven complete years on the credit report. After this seven year period, the person can request their lender to erase the foreclosure from their credit report. If they are lucky, it will happen immediately or it may take some time.
Typically missing a mortgage payment and then facing a foreclosure can bring down your credit rating well below the 500 mark. Over a period of time, if the person is smart, they can repair their credit score easily by handling their finances smartly. After a couple of years of foreclosure, they can start applying for loans and also show potential lenders that they now have the ability to pay regularly.
It is not a must that a person has to take a housing loan. In fact, you can apply for any type of loan once you have managed to repair your credit. Home owners can qualify for a housing loan after 2 or 3 years of a foreclosure. For this, they should not have had any more blemishes on their credit reports and should have been diligent on all their payments.
However, the best way to work on your credit report after a foreclosure is to take this chance that allows you to start afresh. You should make the effort to pay off all your debts, including credit card bills, and be regular with the payments. The effects of foreclosure are negative for sure but that does not mean it is the end of the world for a borrower.
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