How To Buy A House After Foreclosure – The Two Sides Of The Coin

Buying a house after foreclosure will mean that homeowners will need to be cautious and careful, whether they are the defaulted homeowners or simply looking to invest in a foreclosed home. Either way, with foreclosure on the rise, it is best to maintain your mortgage schedule, so you will not be another casualty.

There are two ways to look at the problem of how to buy a house after foreclosure; you could be the unlucky person who has had a foreclosure go against them and be looking for way to buy another home. But also, you could be one of the lucky people who benefits from being able to buying someone else’s house after foreclosure has meant that the property was seized.

Here we will look at both sides:

First – You are Facing Foreclosure on Your Home

You have worked hard for the past few years and have finally bought a home. You hit trouble when you get laid off from your job and you get behind in payments with the mortgage and the lender is threatening foreclosure.  The first thing you need to do is talk to the lender and see if there is a solution you can possibly work out to avoid foreclosure.

But say the worst happens and foreclosure occurs. You will then probably have to buy a house after foreclosure.  You will then have to search for a foreclosure lender who will be sympathetic to your poor mortgage repayment history. There are many specialized companies that will lend you the money needed to buy a house after foreclosure, and so help you refinance your mortgage.

But you have to be careful. Some of these companies which say they help you buy a house after foreclosure are not totally honest and you can get in lots of trouble and possibly lose your home in the process. They may be expensive too, so shop around to get the best repayment schedule and interest rate to help you buy a house after foreclosure.

Just one 60-day late payment could without warning cost you your home if you have signed in with a shady company to buy a home after foreclosure.   If you are fortunate enough to find a good lender to help to buy a home after foreclosure then your problems are solved. 

Now it is time to set your payment priorities and pay that mortgage first.  You can live without electricity, but you need shelter. You may want to look into credit counseling if the lender does not offer it.

Once you get your bills straightened out then do your best not to get into a problem like that again. You don’t want to have to buy a house after foreclosure a second time!

The Flip Side – You’re Looking to Buy a House After Foreclosure Lenders Sell it

If you have some cash to invest you may do well to buy a house after foreclosure. This can work for you as either a cheap starter home or as an investment for the future.

Basically, these houses appear on the market cheaply because mortgage lenders don’t have much use for a house, as a rule, so they will usually looking immediately for someone to buy a house after foreclosure has meant that a house is back in their hands.

Here’s how you can look to buy a house after foreclosure has put the house back on the market at a good price:

First you need to find out what have been repossessed by a bank or other mortgage lender. These bank foreclosure lists can be found at a courthouse, and online.

Next, if you want to buy a house after foreclosure you can check online or go and visit the property. The website of any state’s property appraiser will give you good information you will benefit from if you want to buy a house after foreclosure: what these houses have been sold for recently etc.

Once you decide to buy a house after foreclosure and you know which one you want, you can make an offer. Some lenders allow you to buy a house after foreclosure via online brokers, or they may sell the properties at public auction. Check with the particular mortgage lender to find out what method they use.