Virginia Beach and Chesapeake Foreclosed homes can make you a fortune if you time the purchase correctly and investigate the total property repairs that will be needed before a resale can be made.

 

On more than one occasion, I have been approached by someone who tells me that they cannot purchase a home since they have recently gone through a foreclosure.  That just simply is not the truth, please bear with me for the next few pages and I will relate to you just how easy it is to purchase a home within a short period following a foreclosure.

One of the first things those Nay sayers relate to me  is that a foreclosure will be on their credit record for at least 7 years and they believe it is fruitless to attempt to purchase a home during that lengthy seven year period.  In some cases they fail to make any credit purchases of any sort for the seven year period. That is just simply the wrong thing to do.

Bear with me, and I will take you step by step thru the procedure to buy a home even if you have had a recent foreclosure.

 

 

Step 1 – VERY IMPORTANT! - Re-establish Credit

It is perfectly legal to begin to reestablish credit immediately following a foreclosure discharge unless the judge has specifically ordered you not to do so. Even if you have been ordered not to establish credit right away, there are several legal ways to get around this also.

We all find that the most difficult time following a foreclosure is the first twelve months, and I will show you what you need to be doing during those very important months.  During this period it is very difficult to find any lender who is willing to extend you credit for a home purchase.

Now let’s be clear, the foreclosure will drive up the cost of money for you, especially when your credit score drops below 550.  It is not unusual to find that when the going interest rate is 7 percent your low scores may  require you to pay  12 to 13 percent interest rate when using a conventional mortgage.

If you carefully follow the instructions that I will provide you, then your credit score will slowly begin to climb.  Once  it exceeds the 600’s you may find that the interest rate available to you has now dropped one or two points.

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