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When Can You Buy Real Estate After Foreclosure? - Benchmark CO

When Can You Buy Real Estate After Foreclosure?

Foreclosure With Extenuating Circumstances Generally, lenders will take into consideration any extenuating circumstances surrounding the foreclosure on your Colorado real estate. Was there a death or illness that prevented you from earning money to pay your mortgage? Did you have a job transfer that came with a steep pay cut? Were you severely injured and temporarily disabled as a result? You can add a memo that explains any lapses in credit worthiness to potential lenders. This report can be as long or as short as needed. Many lenders will shorten the waiting period for documented extenuating circumstances. Traditionally the waiting period after a foreclosure is seven years. However, these waiting period guidelines may change and you would be best served by getting up to date information from a qualified mortgage professional. Deed-in-Lieu of Foreclosure and Short Sale You may be wondering what the waiting period for financing is if you have exercised a deed-in-lieu of foreclosure or successfully negotiated a short sale. Fortunately many lenders offer options if you were able to avoid an actual foreclosure. Traditionally the waiting period for a deed-in-lieu of foreclosure can be four to seven years. If there were special circumstances surrounding the deal, you might be able to qualify in as little as two years. The lender may have certain down payment or credit score requirements as a condition of approval. Getting financing after a short sale generally has the shortest waiting time before qualifying for a new home loan. Generally the lender will only require a two-year waiting period before they\’ll approve financing. Once again, a call to a licensed mortgage professional will give you the most up-to-date information. The good news about financing after foreclosure is that it is possible. Your dreams of owning a home can be fulfilled even if  you have experienced a foreclosure in your past.]]>