Knoxville Foreclosure Question: How Soon Can I Buy A House?

fannie-freddie2In our Ask the Expert Section, we recently received a question from Nina, she asks, "I lost my Knoxville home to foreclosure last year after losing my job. I've started work at a new job and am making decent money again. I have a family, which makes it difficult to find a suitable rental. I would like to buy a Knoxville home again, but don't know when that will be possible. After foreclosure, how soon can I buy a Knoxville home again?" Nina, I'm very sorry to hear about your situation. The standard wait time for homeowners that have gone through foreclosure is seven years for all Fannie Mae loans. Since a majority of loans are eventually sold to Fannie Mae, the 7 year wait period is standard for many lenders. In some cases, where hardship can be proven, homeowners are able to buy a Knoxville home again within three years. In order to be approved for a 3 year wait, a homeowners would need to show extenuating circumstances that made paying their mortgage impossible. Last year, the Federal Housing Administration announced their "Back To Work Program," which allows homeowners to buy a home again with no required wait times. In order to qualify, the homeowner must show that they experienced an "economic event" which made paying his or her Knoxville mortgage payment impossible. In addition, homeowners must prove that they had a lose of incomes by at least 20%. Finally, all Knoxville homeowners that go through the "Back To Work Program" must go through housing counseling. While the wait times on buying a Knoxville home after foreclosure have changed, there are a few other things that need to happen besides waiting to buy a home. First a homeowner must reestablish credit so he or she is able to properly qualify for a loan. In addition, depending on what type of loan the buyer plans to use, the homeowner must have sufficient funds to use as a down payment. For any Knoxville homeowner that has faced foreclosure, it just takes time before he or she is able to buy a home again. It is important to work on improving credit, saving money, and maintain stable income. If you’re facing foreclosure, please let me know if there is anyway that my team and I can assist you. You can give us a call at 865-696-9002 or send an email to [email protected]. Also, be sure to check out our Knoxville Short Sale and Foreclosure Solutions Page.

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