The Foreclosure Crisis Of Foreclosure

Decent Essays
Since the burst of the housing bubble, foreclosure practices had serious problems which left homeowners and the economy in a tizzy. Losing a home is not only stressful, but it does not bar you from owning again. After going through a foreclosure, a rent-to own is a perfect solution to get back on your feet and onto a road of recovery. By doing so, you are able to receive a monthly rent credit and lock in purchase price on a new home.
The first step is to improve your credit score. Most banks look at a 24 month history from the date of foreclosure. Apply for a loan, or credit card. Whatever type of credit received, make sure to pay on a timely basis. This will not only raise your credit but will also reestablish your credit. Lenders will want to see that you have had no problems for the next two years. Pay down your debt. Having large balances will not only lower your scores it will also increase your interest rate. Make sure there are no errors on your credit report, Try to avoid making just your minimum payments on credit cards, these are ways to improve your scores.
Save. You must be able to save. With the market starting to stabilize, lenders are looking for larger down payments. You will need to finance the difference of the balance owed once you decide to purchase. You now have had time to reestablish and take control of your finances, which puts you into a better place. This now will allow you to try to re purchase again. Lenders are working with
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