Can you buy a home after bankruptcy&foreclosure?
On One Hand: Bankruptcy Damages Your CreditLenders look at your credit rating to determine loan-worthiness. The credit rating is a composite score based on your financial history, taking into account previous loans, number of credit cards and outstanding debt. A bankruptcy and foreclosure virtually wrecks this score which means that lenders will not trust that they will get their money back from you and will be unwilling to give you a loan.On the Other: Time Can Reverse Credit ScoresAccording to the Moran Law Group, 18 to 24 months after filing for bankruptcy many debtors qualify for loans on the same terms as prior to their bankruptcy. MSN reports that with a willingness to improve spending habits and stay on the low-end of credit limits, your scores will improve and you will be eligible for competitive interest rates.Bottom LineA bankruptcy and foreclosure will not ruin your chances of securing a home loan forever.
