Can you buy a home after a short sale or foreclosure? Absolutely. The bigger question is when.  And that is a much harder question to answer. There are many variables that go into deciding when someone should buy a home after a short sale or foreclosure, and the real estate experts at the Equifax Finance blog discuss those variables in the recent article, “

Can I Buy a Home After a Short Sale or Foreclosure?”

1.            Duration of delinquency – Foreclosures and short sales take time, and the longer they take (the longer you go without paying), the worse it is on your credit rating.

2.            Deficiency judgments – The amount of unpaid negative debt that you are left with after a short sale or foreclosure affects your ability to get financing.

3.            Interest rates – The lower your credit score, the higher your interest rates; and that can mean thousands of dollars over the life of your loan. Saving until your credit score is high enough for you to get a good credit score will mean major savings over time.

4.            Down payment – You’ll need a good down payment; some rules now require a 20 percent down payment, so you need to have that cash up front.

5.            Waiting period – Some mortgage companies and mortgage insurers require a waiting period of two to seven years, depending on the situation.

If you are looking to buy a home soon, and have been through a recent foreclosure or short sale, read the full article on the Equifax Finance blog. Then, browse the site for other helpful articles on real estate, saving money, taxes, identity protection and more.