As consumers lose their homes to foreclosure or short sale, they wonder how long they will have to wait until they can secure a mortgage again. The New York Times reports that a foreclosure will cause up to seven years’ wait, while a short sale recovery may take only three years.
According to FICO, it takes a borrower three years to pull a score back up to mid-range 680 after a foreclosure. A borrower who had a near-perfect 780 score would take about seven years to fully recover, assuming they have income to pay off their debts.
Are you considering a foreclosure or short sale? If so, ask to speak with a mortgage professional at a major company like Coldwell Banker for assistance in making a wise decision. You’ll save time and money.