After going through a foreclosure, you may hear a great deal of conflicting advice. Some may say you can recover fairly quickly from this type of setback, or you might be told it can take at least a decade until you’re able to buy a house again. At Cuevas, Garcia & Torres, P.A., our experience aiding Miami residents facing foreclosure has given us a deep insight into the myths and truths surrounding this difficult experience. We are often able to put clients’ minds at ease despite one of the most challenging events of their lives.
If you’ve recently gone through a foreclosure, you may find it heartening to hear that, according to a research scientist at Ohio State University, most people in your situation will be able to buy homes again at some point. Bankrate states that this point may be sooner than you think. Fannie Mae has recently extended the time that foreclosure victims must wait to qualify for a new mortgage from four to five years. However, you may qualify for an FHA loan after three years if you can show that your experience was due to a situation outside your control, such as the loss of a job. It will look even better if your employment history and bill-paying habits have been good for at least several months.
As with any stressful event, it can help to know what to expect after a foreclosure. If you have credit card debt, you may see a sudden jump in your interest rates, and you may have difficulty being approved for an auto loan. Fortunately, within 24 months it may be easier to negotiate better rates and larger loans, as long as your payment history is good. It may also help to know that many others are in the same boat, thus lessening much of the previous stigma surrounding foreclosures. Learn more about foreclosure issues by visiting our page on real estate law.