| This week I had a call from a woman that asked a | | | | in the best possible position at the two year mark. |
| good question. She has been in a little bit of trouble | | | | First thing you can do is to maintain or establish new |
| with mortgages in the past. She had a foreclosure | | | | credit lines. If you have a foreclosure, more than |
| about two years ago and since then she has been | | | | likely your credit has other problems. Usually your |
| moving from rental to rental and she wanted to | | | | mortgage is the last bill that you let go so you may |
| know how long she has to wait before she could buy | | | | have credit card debts and judgements and other |
| again. Many people that have gone through a | | | | things. If you can pay these things off then call the |
| foreclosure don't ask this question because they are | | | | creditors and setup payment arrangements no |
| so upset and disappointed with the past foreclosure | | | | matter how small. If your debts are overwhelming |
| situation that they don't want to think about buying a | | | | than you may consider a bankruptcy. Bankruptcy is |
| new home for a while. | | | | more complicated now thanks to the new laws but if |
| Here's the thing. You must begin to take steps | | | | your debt is really out of your reach then it may still |
| toward buying a new home as soon as possible in | | | | be a good option. |
| order to cut down your waiting time. Have you ever | | | | After handling your current debts than you need to |
| heard the saying, "time heals all wounds"? This is | | | | start establishing new credit. Start small with a small |
| especially true with credit but the catch is that if you | | | | secured credit card or a small passbook loan from |
| are pro-active with your credit then you can speed | | | | your bank. Show at least 6 months of on time |
| up time. At least where your credit is involved. | | | | payment and this will begin to re-establish your credit. |
| Traditionally banks wont give you a loan with a | | | | You should begin this process about a year after |
| foreclosure on your record until it has been at least 7 | | | | your foreclosure. |
| years. It is around this time that the foreclosure will | | | | Finally, educate yourself. Don't let every mortgage |
| fall off of your credit report. With the market so | | | | guy in town run your credit. When it is time, pull your |
| cluttered with foreclosures you can speed up the | | | | own credit report and score, and show it to several |
| process and in some cases you can get a mortgage | | | | potential lenders without them having to actually pull |
| on a house in as little as two years. The thing is, you | | | | it. This is the best way to get started back on the |
| can do some things that can make sure that you are | | | | road to home ownership. |