Every person who begins their house hunt with, ”I had a foreclosure” must consider what caused the foreclosure and how many home lending programs work to ensure that the home shopper can get a mortgage in spite of difficult circumstances.

Some people have gone through a foreclosure because they lost their job or their salary was cut.  Other people were injured and were unable to work.  Still others were trying to manage a loved one’s estate and had to move in order to keep their family solvent.

Therefore, these three things must be discussed if you had a foreclosure and are looking for a new loan:

1. Why Did You Foreclose?

There are a thousand reasons, but there are lending institutions that want to hear an explanation.  For many lenders, there is a big difference between “I didn’t make any payments” and “I was hurt and lost my job then everything spiraled out of control.”

2. Are You Working Now?

If something happened to affect your employment or earnings that does not mean that you don’t have a job now.  If you are gainfully employed, your current salary tells a lender a great deal about your ability to make payments.

3.  How Is Your Credit Aside From Catastrophic Events?

It’s pretty easy for a lender to look at your credit through a lens that takes into account your credit history before and after catastrophic job loss or injury.
When you’ve had a foreclosure, contact us to find out if your new circumstances can get you into a new home loan even if you’ve been foreclosed on in the past.  You never know until you ask.