Movoto Real Estate reports that the housing market inventory throughout the United States decreased substantially in 2012, with the number of houses for sale in the housing market declining 27% from December 2011 to December 2012.
The decrease in available homes in the housing market will undoubtedly be great news for homeowners who have seen the value of their homes decrease for the last several years. Now with fewer available homes in the housing market for sale, existing home owners, who are faced with less competition, may be able to sell their homes for higher profits.
There has also been a decrease in foreclosure rates. Lower foreclosure rates coupled with appreciating home values will help the thousands of homeowners who previously had a mortgage that was under water. Experts contend the housing market for 2013 could see more of the same.
The National Association of Realtors also reported in their NAR’s Housing Affordability Index a score of 198.2 in November, the most recent month measured by the association which is an increase from 186 the year before, which set a record in its own right, the NAR reports.
Can I buy a home after bankruptcy?
Unfortunately, even if the housing market is improving for house sellers this may be tough news for home buyers. We could be entering what is termed a “seller’s market.” So what if you have declared bankruptcy or have had a home foreclosed? Does this mean you will never be able to buy another home?
It is possible to buy a home after an adverse financial event but you will have to proactively take some steps to improve your credit score and you may have to wait awhile. If, for example, you have filed bankruptcy you may have to wait one to seven years.
To buy a new home within a year after completing Chapter 13 bankruptcy you will have to have a clean credit history and be able to get a new loan “insured by the Federal Housing Administration, or FHA, or guaranteed by the U.S. Department of Veterans Affairs.” A home buyer may have to wait much longer to get a conventional loan after a foreclosure.
How important is clean credit? Even if you have completed the waiting period if you have had a foreclosure and you miss even one credit card payment or another large purchase payment you may have difficulty getting a loan. Bankruptcy may be considered a “get out of jail free” card but following its completion you will have to have a spotless credit record. Immediately talk to the credit agencies if you see any errors or adverse items on your credit report.
Another consideration is employment history. Lenders want to see consistent employment. If there are gaps in employment there needs to be a good explanation.
If you are considering buying a home, talk to a loan officer. Find out what you need to do to improve your chances of getting a home after a bankruptcy or foreclosure.
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