The New York Times published an article on June 23, 2011 called The Post-Foreclosure Wait. It deals with the effect of a foreclosure on a person’s credit, and how long it will take for the foreclosed borrower to recover from the damage to their credit rating.
I have thought for some time that the credit bureaus would have to lighten up on folks that have lost a home to foreclosure. As the housing crunch ends, there are going to be LOTS of people who have foreclosures on their records who want to buy a house. If the lenders want to lend, they are going to have to deal with these borrowers.
Can you get a loan after foreclosure?
In past times, I could see why the banks would avoid lending to the recently foreclosed. But the market conditions that have caused this foreclosure glut is an abnormality. Lenders got irresponsible, appraisals soared, and a lot of normal, responsible people got caught up in the excitement.
The good news is that bad credit is repairable. The article states that a foreclosure is about the worst thing that can happen to your credit, but the credit can be rebuilt over time. And a bankruptcy or short sale could possibly inflict less damage. Click the link above to read the full article.
Can you sell a house in foreclosure?
If you have a house that is in danger of foreclosing, call me at 387-4257. I have bought many homes during the foreclosure process. Once the court case is filed, many people give up! But there are still things you can do to turn the situation around and salvage your credit. I may be able to help you avoid the foreclosure and help rebuild any credit damage that you may already have.