For many decades now, owning a home has been a primary part of the American dream and a sign of some semblance of success in life. It stands to reason then that people in Mississippi who lost their homes via foreclosures likely experienced significant disappointments in addition to their financial stresses and challenges. However, they should know that it is very possible to reclaim the title of home owner even after having gone through a foreclosure.
Realtor.com explains that there are two important components people should focus on when attempting to seek a new mortgage after a prior foreclosure. One of these is to be able to succinctly explain why the foreclosure happened in the first place. This dovetails directly into the second area of focus which is to highlight to a potential lender what the consumer has done differently since the foreclosure. The goal here is to help the lender develop a level of confidence that the buyer will not end up in the same situation again.
According to SmartAsset, one thing that may be in a borrower’s favor is the fact that the recession to a large degree removed the negative connotations associated with foreclosure and opened the minds of everyone including lenders. Even responsible people can get into bad situations.
Consumers should take conscious steps toward rebuilding good credit and using new credit wisely as banks will look closely at these things before approving a new home loan. Being able to save up for a down payment will also be useful.