Having a foreclosure in your credit history can put the kibosh on qualifying for another mortgage for up to seven years. A short sale can set you back just as long. The time-out is coming to an end for households who lost their homes to foreclosure, short sale, or other negative credit events early in the Great Recession. The black marks are being erased from their records. And being a homeowner again is becoming a possibility for many.
For those former homeowners who would like to rejoin the homeownership ranks, The Wall Street Journal's article, "Tips on Applying for a Mortgage After a Foreclosure," offers this advice:
- Be strategic about your timing.
- Pay down credit-card debt.
- Wait to apply for other types of financing.
- Avoid other negative hits to your credit.
For the details on why these steps are important and how to take them, read the full article.
Related blog post: "Boomerang Buyers Are Bouncing Back"
Want to receive our weekly blog round up? Subscribe at the right – and each Friday we'll send you our latest blog posts.
Have a comment or question about this post? Email us to let us know what's on your mind.