With many people facing difficult financial times, people often want to know what consequences they may face for bankruptcy and foreclosures. A person may have been forced into foreclosure for a number of reasons. If the person is now looking to purchase a home, the person may want to know if that’s a possibility due to the foreclosure. How long after foreclosure can I purchase a home?
The answer to how soon can I buy a home after foreclosure varies depending on the type of foreclosure and the presence of extenuating circumstances. If a person had a foreclosure due to a death, job transfer, illness, or severe, accidental injury, the person may be able to purchase a home sooner than others who did not have those circumstances contributing to their foreclosure.
The range of time that needs to pass after a foreclosure before buying a home is two to seven years. If the person had extenuating circumstances, the usual waiting period is three to seven years. Without the extenuating circumstances, the person may need to wait five to seven years before buying a home.
After a deed-in-lieu of foreclosure with extenuating circumstances, the person may need to only wait two years though the waiting period may be as long as seven years. The typical waiting period after a deed-in-lieu of foreclosure is four to seven years. If the person is trying to buy a house after a short sale, the person may need to wait two years after the short sale. A short sale is when the lender accepts less than the total amount due on the home so that the owner can sell the home.
In addition to the waiting period, people who have had a foreclosure may want to take a look at their credit and work towards repairing credit problems to prevent those from stopping them from buying a home. Waiting after a foreclosure does not mean that the person will automatically be able to buy a home. There may be other credit problems that could make a home purchase difficult if not impossible.
Some lenders will look at a person’s credit and give advice on what needs to be fixed before they would qualify for a home. If someone wants to purchase a home immediately after the waiting period, the person may want to have their credit report checked by a lender before the waiting period is over so that they can have time to pay items that need to be resolved.