Now that we have talked about the time it takes for you to get a new home if you file for bankruptcy, it is now time for us to touch base on how you can get a new home for if you have foreclosed on your house.

If you had a foreclosure, you need to wait about three years from the date of the sheriff’s sale/auction or short sale on your previous property.  There is only one exception to the rule and that is what is called a ‘documented extenuating circumstances’, these include death, job loss or disability.  Even then, it is mostly at the lenders discretion.

It is obvious that if you have foreclosed on a home or went into bankruptcy, you are not going to have stellar credit – that is something that you want to work on.  You want to make sure that you get back into the perfect credit area – that includes paying your bills on time and making sure that your credit score stays between 620 and 740+.

Purchasing a home in this day and age, having good credit is something that can truly help you not only get the home that you want, but also get the price that you want.  What happens if you want to buy a home after you have gone into bankruptcy or foreclosure though?  Well, there are some things that you can do – after all, everyone in the world should have a chance to buy a new home and that is what we are going to help you do!

One of the first things that you need to be is organized.  You want to make sure that you mark your calendar accordingly, that way you know exactly when you can start purchasing your new home.  If you have filed for Chapter 13, bankruptcy then after 1 year, you can get a new home.  If you have filed Chapter 7 bankruptcy, you can buy a new home after 2 years.

The next thing we are going to explore in the next blog is if you foreclosed on your home, what you need to do in order to get a new one!

If there is one thing that I have noticed about the foreclosed homes in America is that there is a hell of a lot of them.  No matter where you go, you are bound to see at least six or seven foreclosed homes on the way.  I know that on my street alone, there are at least seven within a two mile radius and that is saying a lot.  Hud homes are something that I did not expect to see around my neighborhood but there they are – signs are going up everywhere.

That is where this plan should really come in handy.  Now, this plan for foreclosed homes is actually to keep the homeowners on however have them renting the house versus just buying it.  While this is a fantastic plan in my head – there are still some questions that have come up – one, if they can not afford the mortgage payments now, how are they going to afford them as a renter?

This plan is getting a lot of attention right now just due to the fact that so many mortgages are going by the waste side, however they need to make sure that they read the fine print.

It may be hard to believe that the lender holding your mortgage does not want to take your house, but in more cases than you can imagine, that is true. Lenders know what the market is like right now. They do not want to try to sell a home that has gone through foreclosure. More likely than not, your lender is willing to help you, you simply have to be honest and up front about your financial situation, as we saw in the first three steps essential for avoiding foreclosure. Now we have steps four through six as well, for some extra help and added advice.

Step 4: You have got to be realistic. Even a payment play is probably only going to be a temporary fix. You cannot rely on your lender’s understanding indefinitely. If he or she is willing to work for you on this, then it will be your responsibility to work with your lender as well, and do all you can to get your home loan out of default, or else sell your home.

Step 5: Thus, you have to create a plan to rectify this situation. You may need to garner some extra income … or start talking to real estate agents.

Step 6: Make sure you stay in touch with your lender. Keep him or her in the loop. That will be better for you in the long run, especially if you show you are making an effort.

Foreclosure is a very real risk for a long of homeowners right now. Avoiding Real Estate Foreclosure is important! If you have ever gone through it yourself, even if you have ever known someone who has gone through it, you know that it is devastating and emotionally draining. As such, it is imperative that you do everything you possibly can to avoid this — at all costs. Fortunately, that is not as difficult as it may seem to be right now. There are six essential steps you can follow to make sure that you never have to go through a foreclosure. Here are the first three.

Step 1: You need to begin by analyzing your entire financial situation — honestly. You need to calculate exactly how much money you can afford to pay on your home.

Step 2: You need to talk to your lender. If you have to, talk to someone in your lender’s customer service department. Be honest here as well, and tell the complete truth about your entire financial situation. Believe you me, your lender does not really want to take your house from you.

Step 3: See if you can negotiate some kind of compromise with your lender. Try to work out a payment plan.

To be honest, knowing the foreclosure process will do nothing but help you.  I am not saying that your house is one that will get foreclosed on, but it is better to know what the process is so you can make sure that you keep your home!  First and foremost, you need to know that the foreclosure process is not going to be the same in every single state, so if you live in one state and move to another, it is going to be completely different. However, it’s important to know the details to avoid real estate foreclosure!

Some states allow up to 180 days for the entire foreclosure process to come into affect, while others only allow about sixty days, so make sure that you do a little research so you know exactly what your state offers.  Knowing how much time you have to foreclose on your home is a great thing to know, that way you know how much time you have before you lose your home.

Foreclosure is something that is terrible – it hurts everyone in the world and more and more people have to foreclose on their homes.  This is one of the main reasons why you should know the process, just in case.  More in part 2!