How Long After Foreclosure Can I Purchase a Home?
If you’ve recently experienced foreclosure, you may be wondering when you’ll be able to purchase a new home.
While it may not be in your immediate sights, there’s probably a good chance you’ll want to get back on track and get into a new home once you do so.
Now when I say purchase a home, I mean doing so with the aid of a mortgage; obviously you can buy a house with cash at any time if you’ve got it on hand. But if you’re looking to get another mortgage, you’ll be subject to various “foreclosure seasoning requirements,” which range from as little as one day to seven years, depending on the type of loan and the circumstances.
Foreclosures Remain on Your Credit Report for Seven Years
A foreclosure will remain on your credit report for seven years, which can be a total drag both on your credit score and your ability to obtain a subsequent mortgage.
However, some banks and bad credit lenders will allow borrowers to purchase a home within just a couple years of foreclosure, depending on your credit score and recent credit history.
It’s imperative to rebuild your credit as soon as possible after foreclosure to increase your chances of being approved for a mortgage post-foreclosure.
That means doing everything in your power to improve and maintain a healthy credit score, including paying all other bills on time and paying down high balances if you’ve got them.
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