Home Loans after Foreclosure/Short Sale etc

[CaWalker]

Home loans after foreclosure are perhaps not so difficult to get after all.

I just wanted to share this with fellow forum members. If its been mentioned earlier, please disregard this post.

I was in a local Credit Union last week and picked up a flyer which talked about loans for people who are in foreclosure process OR have foreclosed previously.

I later read the details and it mentioned 2 special programs/loans for home buying:
1. For people who are currently in the foreclosure process
2. For people who have had a Foreclosure/Short Sale/DIL in the last 6 to 18 months

There was no mention of APRs or other conditions in the flyer. I'll scan the flyer and upload it later in the evening.

I see this as a realization on the part of the Banks that they will need to give out loans to people who've had foreclosure due to a bad housing market.
It also shows that what people say about not being able to buy another house for several years will also not hold true in today's market.

I'm sure we'll be seeing a lot more of these types of programs offered by a lot of other banks soon enough.

[Ambling]

Keep in mind that Fannie and Freddie have a new rule in place saying thou shalt not get a loan from them for 4 years after a foreclosure. This is independent from all other underwriting guidelines... aka: it's a deal breaker for them.

Other lenders, however, may be eager to pick up the business that Fannie is throwing away. I contend that in the future there will be loan products available for 'victims of the 08 crash'!

[cactus77727]

They wouldn't do it if they didn't HAVE to would they? Poor bankers, scraping the bottom of the mortgage barrel.

[Ambling]

It's the future definition of sub-prime: "Debt ratio under 38%, down payment of 20%, FICO score be damned."