How Long To Wait After A Distressed Sale
Southern Ocean County Real Estate
It is an unfortunate reality many individuals who purchased a home between 2002 and 2007 are in financial trouble. The economic crisis coupled with the downturn in the real estate market created a situation where short sales, foreclosures, and bankruptcy became all too common. The good news is, as the real estate market in the national economy improved, many of these individuals who were forced to sell their home at a loss are now again in a position to consider buying a home. This creates a common question of how long one must wait when buying a home after a short sale, foreclosure, or bankruptcy in Southern Ocean County real estate market.
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Buying a Home After a Short Sale, Foreclosure, or Bankruptcy in the Southern Ocean County Real Estate Market
Before we begin, it is important for a potential buyer to understand his or her current financial situation. Part of this involves knowing if now is the right time to buy a home. For some, it may be beneficial to wait before buying a home and improve one’s credit score or down payment amount. It is also important to speak with the lender to understand how the ever-changing rules of lending impact your individual situation. That said, there are a few generalizations we can work with to determine how long after a short sale, foreclosure, or bankruptcy an individual should wait before buying a home.
- Most conventional mortgage products will require a two-year waiting period
- Most FHA mortgage products will require a three-year rating period
- For those who have filed bankruptcy for who have lost a home in foreclosure, the waiting period will be approximately seven years
Buying a Home in the Southern Ocean County Real Estate Market
Buying a home is a major financial investment and it is important to understand all aspects of the real estate transaction. If you found yourself in the unfortunate situation of having had to sell your home in a short sale, foreclosure, or lose the property to bankruptcy there is still hope for home ownership after a waiting period. The rules of lending and the qualifications for mortgages are always changing and will vary greatly depending on one’s individual situation which is why it is so important to speak with a professional mortgage representative who can answer your questions. For more information about the Southern Ocean County real estate market contact us and we will respond right away.
The Beach Haven West Real Estate Group and Southern Ocean County Real Estate Specialists
Farrah Pileggi 201-952-4131| Kim Pileggi 732-887-4853 | Nathan Colmer 609-290-4293