How Long After Foreclosure Can I Purchase a Home – Will Tomorrow Be Okay?

Losing a home is one of the biggest financial disasters that a family will experience. Getting over that, you have to move on to what’s next? Let’s answer the question: how long after foreclosure can I purchase a home?

The Answer…

It is literally possible, to purchase a new home for your family the same day that you have to move out of your foreclosed home. I know that this can sneak by as some good news amidst all the bad news that you have been going through.

If I were you right about now, I would be thinking that there is no way that I will be able to qualify for another loan to purchase another home. What if I told you that with this process that you don’t have to qualify for a loan?

All the things that come with foreclosure, such as damaged credit and stained reputation, will be eliminated with the way that you are going to purchase this new home for you and your family.

The Method…

Average folks do not realize that there are millions of homes sold each and every year that have no mortgage lenders involved. We have all been told that you have to qualify for a mortgage to own a home. Not True!

Savvy real estate investors all over the country rely upon what is termed in the industry as creative real estate investing. This just means using other people’s money. Sounds a little scary if nothing else. That is exactly what a mortgage is. And no, you do not have to borrow from relatives or have a lot of cash of your own.

We are going to use a technique right out of their playbook known as a lease with the option to purchase. This powerful and very successful transaction will put you right back into home ownership as soon as the paperwork is signed. And yes, you will be the legal owner!

Some Benefits…

The real beauty of this is the fact that you are going to set the actual terms of the purchase. If you come across a deal that you do not like, you merely reject it and go on to the next one.

If you have ever searched for an apartment to live in, this process is about the same, with the exception that you are looking to own instead of just renting. Yes, it is that easy!

You will be amazed as to how quickly this can be accomplished if you are serious about owning your own home. How can I be so sure? That’s an easy one – I have done hundreds of these.

Foreclosure – How Long Before I Lose My House?

Many homeowners have questions about how foreclosure works and how long they have between when they miss a payment and when the bank actually forecloses. If you’re wondering how long you have before you have to leave, it depends on whether your case will be handled in a judicial foreclosure or in a non-judicial foreclosure. Most states allow both, but some states only allow one or the other, so you’ll have to research to find out which your is for sure, but there’s a good chance yours will be non-judicial because it moves faster and costs less for the lender.

All Foreclosures

– You miss your first payment (for example, we’ll say this is your July payment and it was due on July 1).

– Your grace period expires (usually 15 days) and you haven’t paid. Your payment is now considered late by your lender. It’s not uncommon to begin getting letters or phone calls from them at this point. Don’t ignore these phone calls.

– At most lenders, once you’re 60 days late (September 2 in our case), your loan is considered in default and the lender can begin either the Judicial or Non-Judicial foreclosure process. To bring your loan current at this point, you’ll usually be required to pay all past due amounts (your July and August payments), all late fees, and your September payment.

This is where lenders have the most flexibility in the process. They aren’t required to enter the foreclosure process simply because you’ve fallen a certain number of days behind. If you’re in communication with them and have worked out a plan to get back current, you can stay out of foreclosure altogether, but you have to take action.

Judicial Foreclosures

– Your lender’s lawyer will file a complaint with your county courthouse and request a court date. This typically doesn’t happen until you’re over 90 days late.

– You’ll be served a notice of this complaint.

– A hearing will be held in your county to determine the sufficiency of the complaint. If you believe you have legal grounds to dispute the foreclosure, this is where you and your lawyer would argue those grounds. At the end of this hearing, the judge will rule whether the complaint is sufficient or not. If it is, the foreclosure sale will be scheduled and your credit record will be marked as having a foreclosure. If it’s not sufficient, the judge will dismiss it. How long all of this takes is dependent upon the courts in your area. Typically, it takes about 30 – 60 days.

– A date will be set for redemption of the property if your state laws stipulate. You can still bring your loan current (including fees, etc) until the redemption date. Even if the house has been sold and someone has moved in, if the redemption date hasn’t passed, you can still get your house back…if you can get enough money.

– A date will be set for the foreclosure auction. This usually happens about 30 – 45 days after the sufficiency hearing.

*** A Judicial foreclosure typically takes anywhere from 6 months to 2 years from start to finish. ***

Non-Judicial Foreclosures

– Your lender will send you a Notice of Default in the mail.

– Your lender will send you a Notice of Sale to tell you when your home will be sold at the foreclosure auction.

*** A Non-Judicial foreclosure typically takes anywhere from 1 month to 1 year to complete. ***

All Foreclosures

– The foreclosure sale happens and your house is sold. In approximately 90 – 95% of cases, the owner of your first mortgage wins the auction because they bid the amount that you owe on that loan and usually no one else will go higher than that.

The owner of your home then contacts the county sheriff who posts a notice of eviction on your door. This notice gives you 24 – 72 hours to leave the house and have all of your possessions out. If you’re there when the sheriff returns, he will escort of off the premises and anything left on or in the property will then belong to the new homeowner.