If you can prove the ability to repay then we have a bad credit mortgage lenders that will Approve you For A Mortgage After Foreclosure
What is a Foreclosure? And it is possible to get a mortgage after a Foreclosure?
Foreclosure is the result of what happens when a homeowner fails to meet the timely payments of a mortgage loan.
To be clear a foreclosure is a legal process by which the homeowner owner forfeits all rights to the property by not meeting terms of the agreement spelled out in the mortgage and loan and repayment agreements. If the proper owner cannot or decides to not to make timely payments on the outstanding debt or decides to sell the property via short sale. The pursues foreclosure and property then go to a courthouse sale or online auction. If the property doesn’t sell in the foreclosure process then the lending institution takes possession of the home.
To understand foreclosure, it helps to keep in mind that the word “homeowner” in this case is actually a misnomer. “Borrower” is a more apt term. That’s what a mortgage, or deed of trust, is: a loan agreement for the purchase price of the home, minus the down payment. This document puts a lien on the purchased property, making the loan a “secured loan.”
When a mortgage lender loans you money without any collateral (credit card debt, for instance), it can take you to court for failure to pay, but it can be very hard to collect money from you. Lenders often sell this sort of debt to outside collection agencies for pennies on the dollar and write off the loss. This is considered an “unsecured loan.”
A secured loan is different because, although the lender may take a loss on the loan if you default, it will recover a larger portion of the debt by seizing and selling your property. This is why in recent years lenders have been so strict in regards to the appraisal and real estate value process.
So what happens in a foreclosure? The specifics can vary according to state law, but we can break it down into five stages.