Getting a new mortgage after a short sale or foreclosure is now possible for many Americans who lost their homes during the housing crisis.
Even if you’ve gone through a foreclosure or a short sale, you can still buy a home.
Here’s some good news: Hundreds of thousands of Americans who lost their homes in the housing meltdown are once again eligible to buy a home. Two years ago, the number of re-eligible households was 285-thousand. In 2012, that number tripled to 729-thousand. And Moody’s says by this spring, the number will be 1.5 million.
If you’re applying for a new mortgage after a short-sale or foreclosure, it can take between two and seven years to re-establish eligibility. Short sales tend to offer faster recoveries than foreclosures.
But you’ll also need a great credit score, a solid employment history, and positive bill-paying habits to instill confidence in your lender.
Contact your bank or mortgage lender to get the process started. You may be in position already to buy a new home.