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Checklist For Borrowers Re-Entering The Market After Foreclosure

“Where we love is home – home that our feet may leave, but not our hearts.”- Oliver Wendell Holmes

More than a roof, more than a shelter, more than a structure on a plot of land; our homes are built with love and commitment. A home is a place where we learn the most, love the most and it’s a place where we can be ourselves. During financial instability, people struggle to secure their most important asset, their home. Due to unforeseen circumstances, sometimes people have to sacrifice the security of their homes, and when that happens it becomes difficult to recoup and come to terms with life. The emotional distress during foreclosure and the process of shifting from your own home to a rented apartment is painful.
When luck and circumstances are not in our favor, we must make critical decisions. Sometimes this means that homeowners have to step out of a home that promises love, security and togetherness. Apart from the distress and the pain, there are serious repercussions that come from home loss. Damage to one’s credit score is imminent and distressing. For this reason, the previous homeowner will have to wait two to three years before re-entering the market to buy a home again.

When people approach lenders to buy a home for the second time, several factors are taken into consideration. Those who are planning to re-enter the market after foreclosure should consider the following before approaching a lender for a home mortgage loan:

  • Job stability: People who fell into foreclosure due to job loss have to prove their job stability before re-entering the market. Lenders look for job stability before granting a suitable home mortgage loan.
  • Saving attempt: After a foreclosure, it is important to rebuild savings to prove financial stability and the ability to make monthly payments on time.
  • Attempt to improve credit score: It is a difficult and time-consuming process. A foreclosure can drop a credit score by about 150 points. On-time bill payments and keeping credit card balances below the maximum level help to regain the lost score.
  • A valid reason for foreclosure: If a foreclosure occurred due to a justifying circumstance such as job loss or unexpected medical bills, then the waiting period for a new home mortgage loan can be reduced.

Most importantly, it is important to explain to lenders the exact reason for foreclosure. Accordingly, lenders suggest an affordable home mortgage loan. Lenders try to balance affordability and equity to offer a sustainable program that is beneficial in the future. Lenders work as partners and suggest loans that can be transformed into performing assets.

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Financial Lenders – Friends in Need

“It’s the hardest thing in the world to go on being aware of someone else’s pain.” ― Pat Barker

Helping those who are struggling and striving constantly to bring equilibrium in life is an attitude that calls for appreciation. Either we give up on life or try to work things out, brick by brick. What should not go unnoticed are the hardships a person faces and the zeal to bounce back and take control of life. Lending companies have the opportunity to contribute to bringing about a much-needed change in their lives.
Home is the place where we feel secure. Mortgage lenders can be a ray of hope for people attempting to buy a new house with a “less than acceptable” credit score. Technology and online tools cannot help borrowers in this situation. Resilient borrowers looking for a home mortgage loan visit lending companies hoping for a customized solution, not mind-boggling calculations. A handful of lending companies look beyond the credit score. A pledge to revive the lives of those in financial crisis is an inspiration in itself.

Empathetic lending companies look beyond the credit report to reach out to people in need of a helping hand during crisis. These lending companies listen to the hurdles of borrowers, try to understand the current financial status and analyze their requirements and determination to recover. Accordingly, home mortgage loans are provided that match the situation and ability of borrowers. With respect and integrity, each story of hardship is listened to. Commitment to sustainable partnership is what these companies believe in. Personal service is offered at every step. These kinds of services go a long way. What technology and automation cannot do, these lending companies can make possible. Irrespective of the reason for a low credit score, intent to make things better brings about the much-needed change in the lives of borrowers.

Lenders can help realize the dream of borrowers aspiring to buy a house with lower credit scores. Borrowers can lean on these lenders for help in attaining the dream of homeownership.