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Buying a home while going thru foreclosure

Discussion in 'Deed in Lieu of Foreclosure - Do You Need Help to ' started by blssed2bme, May 13, 2011.

  1. blssed2bme

    blssed2bme LoanSafe Member

    All --- have a question for you....My move date is Jan 2012 for my strategic default and I was preparing to move to a rental property after that. However, I started thinking about buying a home north of the city for a fraction of the cost of my home. My credit score is at 659 according to CreditKarma.com. My job is stable and my income is great.

    What do you think my chances are of buying a house right now? Or is this a pipe dream and I should just rent for a few years?
  2. knownick

    knownick LoanSafe Member

    If you already have missed payments on your credit report your chances of securing financing in this lending market are essentially zero.
  3. shortsale973

    shortsale973 LoanSafe Member

    I am going through the same ordeal, except I am short selling. My current loan is 209k and I have a package submitted for $108. If the bank approves I will be renting for a little while, saving as much as I can before I buy again.
    Are you thinking of applying for a loan? or buying cash?
    I am afraid if I buy a house cash to close to the short sale, the bank will pursue a deficiency against me. I guess their case would be, "if you am undergoing financial difficulty how could you afford to buy another house"...etc....
    The last thing you want is to some how slip through the cracks, get approved, and a couple months later the bank place a lein against your new home because of the money you owe or may owe......
  4. Buckus

    Buckus LoanSafe Member

    You will have to qualify for both the old loan and the new loan on your current income. If you've already stopped making payments on your current home, it's too late; almost no lender is going to write a mortgage for you while you're currently in default. You can try a mortgage broker who will have more avenues to try, but it will be really, really difficult, if not impossible.

    If you wanted to buy and bail, you needed to do the buy part first, then bail.

    Of course, if you've saved enough cash to buy a house without a mortgage, the disposition of your current home is irrelevant to the purchase of a different home.
  5. Cat Damiano

    Cat Damiano Mortgage Wars


    Buckus is correct, it would seem that the window of opportunity has passed.
  6. knownick

    knownick LoanSafe Member

    If you already have late payments on your credit report, then your chances of getting financed in this mortgage market are essentially nil.
  7. Al915

    Al915 LoanSafe Member

    Does anyone know about a rent to own...or is this a bad option. Just heard about this and was wondering about it.
  8. dg0129

    dg0129 LoanSafe Member

    As more time passes I'm very interested to hear stories about what kind of timeframes people have before they are able to buy again. This really all started in 2007 so I'm very curious how people who were foreclosed on in 2007 are doing now. That being said my understanding is that if you have a foreclosure you can't get a loan for 5-7 years from anyone other than the FHA (3 years?). If you do a short sale or deed in lieu and can put down 20% you can get another loan in 2 years. I've contacted some lenders because I have the cash to put about 50% down on a place I would want to buy and so far I've been told these guidelines are what they go by. I'm curious if anyone has had success with any of this stuff. I'm still waiting for my DIL to complete, but once it does my countdown begins. I did buy another real cheap place for cash while in the middle of foreclosure(Not a place I really wanted to live). If you live in a non-recourse state I don't see how the bank could put a lien on it. The only way they really ever could would be by taking you to court and getting a judgment if you live in a recourse state.
  9. dg0129

    dg0129 LoanSafe Member

    Generally rent to own is a pretty bad deal. I'm sure there are rare cases that it could work out nicely, but usually rent to own means you pay 5x for something before you own it. Sometimes they have owner will carry financing available, but this is also pretty risky. Theres really nothing to stop the person from collecting your payments, but not paying the mortgage they have with the bank.
  10. Al915

    Al915 LoanSafe Member

    Thanks for the input Dg0129, I am getting ready to move out of this house and will be looking for a rental. I too was wondering how long the wait is for a 3 year period. I really have not found any info on this.

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