Removing Roadblocks to Homeownership – The Big 3 Credit Issues

Filed under: Credit Issues

Continuing with our theme of removing roadblocks to homeownership, today I want to expand a little more on the topic of credit. I’ve talked about credit as a major roadblock, but I feel like it’s important to talk specifically about what I refer to as “The Big 3” credit issues: short sale, foreclosure, or bankruptcy. Having one of these issues on your credit might not be the financial death sentence you may think.

What You Need to Know about Your Credit History

There are always people facing these credit problems, regardless of the economic climate. But rewind to 2009 to 2011, and it’s unbelievable to see how many people went through one (or more) of these big credit issues. Some homeowners even faced all three of these problems during the economic downturn. It was a lot more common than people realized during that time.

What we see all the time now is when people think that the experience is basically a permanent mark on their credit history… a death sentence. Not only are they worried about their credit, but they are also carrying the mental burden knowing that they lost a home and/or filed financial bankruptcy.

Just because you experienced one or more of these things, doesn’t mean that you are out of the game completely. Don’t write off your opportunity to own a home again! Programs like FHA and VA can be considered, and you could be ready to buy again in as little as two years. Check out this .pdf I put together showing the standard waiting periods if you want to buy a home again.

Recovered Credit

Also, consider that most of the time it only takes seven years for your credit to recover after a foreclosure. Many people who experienced these financial difficulties in the real estate crash are past the 7-year mark and might even qualify for conventional loans now.

Each situation is unique which is why you need to talk to me for personal recommendations. There are many rules that affect when you can buy again, and I’d love to talk about your individual situation.

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