Buying a home in Bucks County after Foreclosure or Short Sale

The past 5-7 years have displaced a lot of homeowners.  When the Real Estate market crashed, many people were left way underwater on their homes, and were forced to Short Sell them.  Additionally, when the economy tanked right alongside the Real Estate market, another large group of people lost their homes to foreclosure.

Both of these circumstances put black marks on credit reports, leaving these people unable to buy a new home. 

So, the big question out there right now is – when can people buy homes and get mortgages after a short sale or foreclosure appears on their credit report?

In looking at foreclosures and time to buy, it can differ if there are extenuating circumstances that led to the foreclosure – such as a death in the family, illness, or an accident resulting in serious injury.  In these cases the waiting period can be less.

 - Normally to buy after a foreclosure – 5-7 years

 -  With extenuating circumstances – 3-7 years

 - Buying after a short sale – generally 2 years

All of this is becoming relevant right now because a large percentage of people who lost homes, have worked their way through the waiting period and are ready and able to buy again.

It is important for those who go through a Short Sale or Foreclosure to maintain pristine credit while they wait to be able to buy again.  Lending guidelines have tightened – the lenders will require a strong credit score with the borrowers having paid all their bills on time.

As these potential homebuyers are moving back into the Bucks County Real Estate market, housing prices are getting ready to rise, and mortgage rates are still low.  It’s a great time to buy Real Estate in Bucks County.

Feel free to contact me if you are looking for a new home in 2013.

There are a lot of great homes in Yardley, Newtown and all of Bucks County.