Foreclosure : The Foreclosure Crisis

Decent Essays
The foreclosure/housing market crash several years ago affected a vast amount of families across the country. Unfortunately, my family was also affected. Thankfully, my parents have not gone through foreclosure yet, but we are all stuck in a house because we are “underwater” (owe more than it is worth). This crisis directly and indirectly affected so many, but thankfully we are all starting to bounce back.

For those who had the unthinkable misfortune to lose their home and go through foreclosure, it isn’t the end. In fact, if they still dream of becoming homeowners again, it can happen. It may take a while, years in fact, but it can be done. The first thing a potential boomerang buyer (previous foreclosure victim in the process of transition to own property again) should do is to be educated on the recovery process after foreclosure. Foreclosure doesn’t necessarily begin the day you pack up, move, and turn over your keys to the bank. Foreclosure could literally take years after that. A foreclosure is listed on your credit report for seven years. It may be listed longer, but it can really only be held against you for that long. However, this doesn’t mean you have to wait seven years or longer after foreclosure to purchase property again. The time you have to wait will largely depend on the lender, the type of loan and your credit.

During the wait, you need to clean up your credit history. It is one thing to have a foreclosure and no other issues in your credit
Get Access