Did you know that if a home goes into foreclosure, the homeowner will not be able to get another FHA or Fannie Mae loan for five years? I thought of this on my walk this morning after I noticed a house sitting empty. The week before that house was someone’s home: the lawn was freshly mowed and there were pretty potted flowers on the porch. Now, the flower pots are gone, the lawn is getting a little seedy, and there are no window treatments. Then I spot those telltale stickers on the front window. Another house has gone into foreclosure.
I wonder whether the owners of this home gave up and walked away? Did they move into a family member’s or friend’s home, or did they find some little apartment? If they had negotiated and closed a short sale, they may be able to get an FHA or a Fannie Mae loan two to three years earlier, shortening the time they must rely on others or live in less-than-ideal circumstances. You can learn what people facing foreclosure should consider in the on-demand webcast on Short Sale Best Practices.