Foreclosure

questions & answers

Question: If your home goes to foreclosure, how may years do you have to wait before you can buy a home again?

Answer: There is no precise answer to this question, however it may be three years or more before a homeowner will be able to purchase a home with a mortgage whose interest rate is at or near market because of the effect on his or her credit score. As a result of foreclosure, the FICO score will take a major hit and thus the homeowner may not be able to qualify for a conventional mortgage for some time. Over time, the FICO score will increase. At some point, presuming there are no other negative marks on the homeowner's credit, the score will increase and the homeowner may be able to obtain mortgage financing. The homeowner may end up with a higher interest rate and may need to make a higher down payment then others in the market place.