Bad Credit Foreclosure Refinance

Everyone knows that the foreclosure properties are sold at a great rate. When consumers get low interest rates and good mortgage terms, foreclosure becomes the ultimate deal. If you are the one who doesn’t have a good credit score, you may find it little difficult to initiate a new property purchase. So, knowing how to purchase a foreclosure even if you have a bad credit foreclosure refinance, can be beneficial for you.

What to do if you have a bad credit foreclosure refinance score?

  • You must consult with a mortgage broker about your credit history and credit score. You should know that you must have a minimum credit score requirement to be able to apply for a home loan. Your loan officer is likely to guide you about the government-insured loans because they can be obtained easily even if the credit score is questionable.
  • You must apply with your loan officer for the FHA loan. You have to provide statements that talk of the reasons that led to the missed or late payments that affected your credit score badly. Temporary reasons such as job loss, medical emergencies, death in the family or temporary illness are the points that make it easy for you to get the home loan even if you have a bad credit score. It is because anyone can fall into such circumstances and these are the only reasons that can be overlooked because they impact you for a short period of time.
  • You should provide your loan officer the references of your payment histories against utilities in your name. When they know you always make the payment on time and unavoidable circumstances led to the bad credit score, it will solidify your case. When your file is complete, it will be submitted with the loan officer and you have to wait for a week’s time for their revert.
  • When the file is approved you can start looking for the foreclosed homes. You should have mortgage approval as the bank will want to see that before entertaining any offer on the property. You also have to pre-qualify with the bank that owns the property you want to buy. It is because they want to be sure you will be able to close on the property.
You now have to submit an offer on the property and include the mortgage approval letter. When you have completed the process, you can start making the preparations to finalize the purchase.