How to Buy a Home after a Bank Foreclosure

Finding yourself in the grips of a foreclosure is an experience that will not likely be soon forgotten. The sense of failure and devastation can leave you feeling defenseless and lost. Consider this time a learning experience and shake it off. There will be better times ahead and instead of giving up, take action. Follow this basic plan on how to buy a home after foreclosure and soon your dilemma will be nothing more than a bad dream.

Create a Plan for a New Home

Many homeowners that have found themselves in the midst of foreclosure assume that buying a home is not going to be an option for many years. This does not have to be the case.

DO research in areas that are attractive to you and your family. Check home prices and know if they are within your budget.

DO NOT go from one extreme to the other in looking at cheap, bad neighborhoods or pricey sub-divisions that your paycheck will never allow.

Find a Short Sale in your Neighborhood

The thought of leaving your neighborhood and friends can be depressing but there are ways to avoid this trauma. Drive through your addition and look for homes for sale through a realtor or homeowner. You will be amazed at the homes offering a short sale.

DO inquire with realty companies, homeowners or an online realty site to determine the type of selling options being presented. Make it known that if the house is purchased by an investor in a short sale that you would be interested in speaking with them. This is an investor’s dream come true. The investor buys the home at a discounted rate and with doing little or no work, resales to a foreclosure victim hoping to stay in the neighborhood. The homeowner gets to stay in the neighborhood and the investor makes a nice profit without much work.

DO NOT lead the realtor to believe that you are interested in purchasing the home. Suck in your pride and lay all your cards on the table. Professionals in the realty business often know investors that would grab this deal in a red hot minute.

Turn a Bank Foreclosure into a Positive Situation

When was the last time you thoroughly checked your credit reports and scores? If you are like most people, the thought of going through each debt and error is worse than pain. However, this is the place to start in focusing on the future and turning a bad situation into a positive one.

DO order copies of your credit report from all three credit reporting agencies. You can also find companies online that will provide all of this information for you, in addition to credit scores. Once you have defined all of the problems and sent proof of disputes, you can look forward to watching your score rise each month.

DO NOT assume that your credit will be shot for at least two years and do nothing but mope. There are several plans of action to take in order to keep a credit score healthy, even after foreclosure. Subscriptions to publications that offer advice in increasing your credit score are not all hype. Many have valuable information.

Look to Tomorrow

There are people that go through devastation with home fires, medical problems and worse than a foreclosure, so don’t feel as if you are alone. Every disheartening interference in life comes with a silver lining. The experience to learn and grow is worth more than you can imagine.

DO look to the future with zeal and realize just how important your home really is. Take steps to prevent foreclosure again by creating a plan of saving and good credit. Take out a secured credit card and pay off the balance monthly in order to have a good record started on your credit report.

DO NOT blame the government and others for your sorry state of affairs. No everything in life can be chocolate and roses. By learning from your mistakes, you will be able to fend off bad choices in the future.

Other ways to obtain a home after foreclosure are rent-to-own homes, also called lease option homes. This can be an advisable way to home ownership, and you might consider it while deciding where you want to go in the long-term. Waiting a couple of years before making a decision can also allow time to build up a substantial savings and increase your credit score to buy the perfect home.

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