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Can You Buy a Home After Suffering a Foreclosure?

By William Hauselberg Subscribe to RSS | January 16th 2012 | Views:
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Foreclosing on a home is a financially and emotionally devastating experience. Not only does it mean the loss of a home, but foreclosure is a serious situation that can ruin one’s credit for years. When faced with foreclosure, most people fear they will never again be able to realize the dream of home ownership. Although foreclosure is a serious word with serious consequences, it is not the end of the road.

Suffering a foreclosure does not mean you will never be able to purchase a home ever again. It does, however, mean you will need to wait at least a few years. On average prospective buyers will need to wait an average of two to four years before they will be considered for another mortgage. Several factors are taken into consideration such as whether the hardships involved at the time of foreclosure were beyond the buyer’s control.

Lease to Own Option

One avenue to consider when looking for ways to buy a home following a foreclosure is finding a home with a lease to own option.

Leasing to own gives buyers the option to purchase their rental property within a set period of time. Though this timeframe may vary on a case by case basis, the average is around three years, making lease to own real estate a viable option for individuals who have suffered a foreclosure, as their credit has suffered greatly and therefore face several challenges when meeting loan requirements.

Under a lease to own option, the potential buyer agrees to pay what is known as an option fee. The option fee tends to range from about one to five percent of the price of the property. The buyer then pays regular market rent as well as an additional rent premium, both of which are then credited toward the purchase price. All contract items – purchase price, option period, option fee, and rent – are negotiable. It is often more beneficial for buyers to negotiate a longer option period as it allows them more time to rebuild their credit and establish savings.

Sellers can also benefit from lease to own real estate in a post-crisis market, because it may be the only way they will receive a reasonable sale price.

Leasing to own is a viable option that can benefit all parties involved. For more information on how to buy a home after foreclosure, contact a local, reputable realtor to get the help you need today.

William Hauselberg - About Author:
The author has an immense knowledge on lease to own real estate. Know more about how to buy a home after foreclosure related info in his website.

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