Daylight Following Not So Rare Home Foreclosures

Daylight Following Not So Rare Home Foreclosures

Back in the day when home foreclosures in Castle Rock  Centennial  Greenwood Village    and Parker were truly rare, people who had just gone through one had little knowledge of what the ultimate repercussions would be. Although home foreclosures are still to be avoided if at all possible, the circumstances that created many recent ones are often understandable. Just about everyone in and out of the banking and real estate industries has seen otherwise responsible individuals fall victim to outside economic conditions.

Understandable though individual home foreclosures may be, future lenders will still follow hard and fast guidelines. If home foreclosures – in Castle Rock  Centennial  Greenwood Village  and  Parker  or elsewhere -- are in your recent past, putting yourself back on the right track to home ownership will take close attention to the credit-building basics you may not have had to think about for years:

  • Bide your time. While it’s not necessary for home foreclosures to disappear from your report to qualify for a new loan, it can take seven to ten years for missed payments to fall off your credit report.
  • Spend the next two to three years diligently demonstrating wise spending habits. Not taking on large amounts of debt while making on-time payments improves your credit score even as you strengthen your financial position. Play it safe, too: since missing payments sets the credit clock back to zero, don’t risk waiting until the last minute to make payments.
  • Focus on paying off any collection accounts in full. Although paying a collection account does not necessarily boost your credit score, mortgage lenders still see any unpaid debt as a strong negative.  Since you will be required to settle those accounts before closing a new loan anyway, so it’s beneficial to address outstanding debts early.
  • Depending on your previous loan situation and credit history FHA will loan to buyers that have had a foreclosure.  You will need to wait a minimum 3 years under the current guidelines.  It is important to talk to a local lender to discuss specifics about your situation.

The American Dream of home ownership need not be permanently lost due to home foreclosures. With planning and patience, anyone can rebuild their finances.  Then as now, I’m here to help answer questions at any stage of buying or selling Denver Metro Area  real estate.  Feel free to contact me for a private consultation.

Jason Peck is part of the Carr & Peck Real Estate Experts at Coldwell Banker. He has been recognized locally and nationally as in expert in real estate. Locally he is 2nd in Denver Metro sales out of 5,000 agents and has been recognized by the Wall Street Journal and Real Trends as one of the top selling agents in the country. He is a top 10 agent for Coldwell Banker nationally in homes sold.  He is co-author of the National Best Selling Book, “The New Rise in Real Estate”. For more information feel free to contact him  or call 720-446-6301.

 

Photo courtesy of freedigitalphotos.net


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Dated: November 30th 2012
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