Steps To Home Ownership After Bankruptcy
How soon can we buy a home after bankruptcy? This is a frequently asked question from my clients who are struggling to decide whether to fight to.jpg)
save their underwater mortgaged home, or simply walk away and come back into the market within a couple years. What we are now seeing is a steady stream of buyers who went through the short sale process nearly two years ago, who have saved their money and now have 3-5% to buy again.
Home Ownership University posted FHA, Fannie and Freddie guidelines in their recent article. It is very important to consider your long term goals when making the financial decision to walk away from your present mortgage and start over. If you are among those who want to re-enter the marketplace in the future, a short sale and/or bankruptcy is clearly a better option than a foreclosure. Remember that time is of the essence because the safe harbor tax breaks will likely be ending in 2012.
Your credit score is also a factor here and you are wise to work with a reputable credit repair expert whether you decide to file bankruptcy or not because lenders are looking for a score if 640 or better for potential buyers. If you have debts besides your mortgage, you should consider bankruptcy as an option. Otherwise, if all you're dealing with is mortgage debt, then a short sale is right for you.
