Mortgages: All Is Not Lost For Those That Lost Their Homes
If you lost your home during the recent economic nightmare then you may feel that everything is lost and that home ownership and mortgages are now out of the question. That may not be the case. FannieMae have recently announced that home loans for some victims of the financial fallout may still qualify for mortgages.
The press release from FannieMae states that those that suffered:
a preforeclosure event (preforeclosure sale, short sale, or deed-in-lieu of foreclosure)
could find the doors re-opening for them in the mortgage market. Waiting periods will apply and will depend on a number of factors. For many, the changes in details such as ‘why’ you were forced into a preforeclosure event will be taken into account. For example, loss of employment at the time will be considered a mitigating event.
If you can quickly build some credit credibility and a deposit of 20%, your waiting period could be reduced to two years (from the date of the preforeclosure event). For those looking at mortgages with only a 10% deposit, the waiting period will be four years. These are both reductions over the previous possible seven year exclusions. There are also changes for those that went through bankruptcy processes.
After a bitter couple of years that has seen thousands lose their homes, for once the future may offer a glimmer of hope. If you have been affected by any of these events in the past, I suggest you read the press release – for a bank, it is in fairly plain language and easy to understand. The bottom line is fairly straightforward – even though you lost your home during the financial crisis, you may still be eligible for a mortgage and to re-enter the home buying market.
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