Going through Foreclosure in Greensboro can make it seem impossible to ever buy a house again. First let’s take a look at what happens when you go through Foreclosure in Greensboro.
- Credit Hit – Can decrease your score 100-160 points
- Taxes – When a debt is forgiven, the debt is considered a taxable event. The IRS states that any borrowed money that is not paid back is considered as income and is taxable.
- Buying A House In The Future
The impact of the process can be devastating, long-lasting, and touch your life in a variety of negative ways. While you may believe you are destined to be a renter for the rest of your life. However, foreclosure does not have to mean that buying your own home is no longer possible.
With time and patience, along with perseverance, you can make buying your own home a reality again. By educating yourself as fully as possible about credit and real estate, you are far more likely to be successful. Read on to discover how to buy a house after going through a foreclosure in Greensboro and start living the dream of homeownership again.
Save Your Cash
Since your credit has been so adversely affected, the more you save towards buying a house after going through a foreclosure in Greensboro the better. Every dollar makes a difference. You may be required to put down more than the standard minimum because of your credit history. You will want to have additional cash on hand to make any repairs or complete work, which often comes along with more affordable housing options. If you have not yet, make plans to sit down and get serious about working out your budget and sticking to it without fail.
Add into your budget saving from three to six months of your income as emergency living expenses. You may just be in for a shock to learn how much is being spent on small expenditures, such as special coffees or eating lunch out of the office every day. Cutting out unnecessary spending will be extremely helpful when it comes to building your savings. Dedicating yourself to your budget in every area of your life in very small ways can make huge differences over the long term and help you in your quest to being a homeowner again.
Get Your Credit Report
Your credit report must be improved during the period you are forced to wait to qualify for a mortgage, so that you may buy a house after going through a foreclosure in Greensboro. One of the first steps you should take is to ensure that the information being reported is correct and rectify any data that is in error. Being knowledgeable about your credit will make the processes of buying a home again simpler.
Another way to improve your score is to make timely payments without fail, this can have a great impact on the overall numbers as well. This means pay your bills on time. Additionally, you will want to make a concerted effort to pay down the balances on your remaining debts. Doing so will improve your debt to income ratio, which is the percentage of your income used to pay your monthly debts.
Improve Your Credit Score
Once you have gone through the process of foreclosure, it will remain on your credit history for seven years. Additionally, there is at least a two year period for VA loans, and at minimum, three years before you would be able to qualify for mortgages from other lenders. You will want to work swiftly, taking any actions within your power during this time to repair your credit score in any way possible.
When you do buy a house after going through a foreclosure in Greensboro, you can expect to pay higher interest on the mortgage as well. For this reason, it may be beneficial to buy a property that is at a bargain price and invest some elbow grease equity into your new home. Renovations might be a short-term expense, but they will be beneficial in the long-term because the equity of your home has increased.
Extenuating Circumstances
Regrettably, circumstances in life can bring on changes that are unpredictable and are beyond our control and we are usually forced to live with the consequences. Should the cause of your foreclosure fall under this category, this fact can shorten the waiting period needed for you to qualify for a mortgage.
To do so without any waiting period, your situation must meet the guidelines your lender considers as qualifying for the extenuating circumstances exclusion. Likewise, you must be able to show that you have fully recovered financially from the event and that the event is unlikely to occur again should you buy a house in the future.
There Is Hope After Going Foreclosure in Greensboro!
It is never a bad idea to have an experienced guide, especially when you have done all of the work or repairing your credit and making sacrifices to save, in order to achieve homeownership again. Professional buyers can help you find a house at a discounted price. Considering the impact of a foreclosure on your credit, the lower the mortgage, the more savings over the long term.
You can rely on the network of industry professionals that have been built over time with the best in the business. These professionals work to fulfill your goals and suit your needs, from the initial inspection through closing. Because of such networking, professional buyers have the inside scoop on the best deals in Greensboro, making your dream of owning a home again closer to a reality.
Why not let a professional buyer, like those at Simply Sold Property, guide you step by step through the process needed to buy a house? Simply Sold Property makes it easy to buy a house and save money after going through a foreclosure. Ready to learn more about how to buy a house after foreclosure in Greensboro? Reach out to Simply Sold Property at (336) 530-5204 today!