Bankruptcy & Foreclosure
A foreclosure is a legal process by which the lender or the seller forces a sale of a mortgaged property because the borrower has not met the terms of the mortgage, which is also known as a repossession of property.
In the case of a bankruptcy or foreclosure, borrowers have a difficult time securing a loan. In the event of a foreclosure, the borrower has three years from the date the claim was paid until he/she is eligible for another FHA loan, unless the foreclosure was the result of extenuating circumstances beyond the borrower's control and the borrower has since established good credit. Many consumers struggle to find a company that offers bad credit home loans online, especially if they have a bankruptcy or foreclosure in their past.
Chapter 7 bankruptcies require the borrower to wait at least two years from the date of discharge, while Chapter 13 bankruptcy requires the borrower to have been paying on the bankruptcy for at least one year, performance must have been satisfactory and the borrower must also receive court approval to enter into the mortgage transaction.
At Smart Home Mortgage Loans, we understand how mistakes can happen. Let us help you explore your options today!