Buying After Foreclosure

Since the start of the housing crisis in 2007, nearly five million people in Kentucky ad around the country lost their homes to foreclosure. However, after seven years, those foreclosures came off of their credit reports, and they once again look like qualified buyers to some lenders. Some believe that this may create a new segment of home buyer and help increase home sales in the United States.

For some who were foreclosed upon in the past seven years, it may be harder to get a loan as larger banks require near perfect credit scores. Although they may offer FHA loans, those loans may come with severe restrictions. As a result, borrowers may need to turn to smaller banks and other lenders to get the loans that they need to buy another home. Under FHA rules, a borrower may only need to be two or three years away from a bankruptcy to qualify for a mortgage.

In some cases, lenders are offering loans known as non-QM loans. These loans do not conform to standards that would protect banks in the event that the borrower defaults on the loan. Those who wish to borrow under such a program may need to provide proof of income, show that they have sufficient reserves to cover costs and put 20 percent down on the home.

Those who are going through a mortgage foreclosure may wish to talk to a bankruptcy attorney. Doing so may allow a homeowner more time to work out a loan modification. This could help an individual free up cash to catch up on past due mortgage payments without having to give up ownership of his or her home. While the bankruptcy case is underway, a debtor will receive an automatic temporary stay from creditor contact.

Discover your options and stop the harassing creditor calls today.

“I’ve helped hundreds with their bankruptcy needs. Call today to get relief from the burden of debt.”
Contact Bauman Law: (502) 267-7967

Two Locations

  • Dixie Manor

    6801 Dixie Highway, Ste 229
    Louisville, KY 40258

    Map & Directions
    • Tue 9-5
    • Thu 9-7
  • J-Town Gaslight Square

    10505 Watterson Trail
    Louisville, KY 40299

    Map & Directions
    • Mon 9-5
    • Wed 9-7
    • Fri 9-5
    • Sat by appointment