Ask Terry Questions Mortgage loans after short sale

Mortgage loans after short sale

By Terry Savage on September 27, 2015 | Credit/Debt

we have bad credit because of a bankruptcy 6 years ago. We also have to do a short sale on our curran home due to job loss. Will I ever be able to be approved for a mortgage loan?

Terry Says:  If you start now to rebuild your credit, you will likely be able to get another mortgage loan in the future.  The bankruptcy will stay on your credit report for 10 years, so you’re well on the way.  If you check your credit report, you’ll find the date that the lender posted the information about the loss the bank took on your short sale.  That information will stay on your report for 7 years!

In the meantime, get a secured card. (Go to Bankrate.com at this link to learn more and search for them.)   Spend a little on the card every month, pay on time and in full, and you will start to rebuild your credit.  If you want more specific advice, contact the National Foundation for Credit Counseling and speak to one of their helpful counselors to create a budget, and deal with spending issues.  The toll-free number will connect you to the nearest local office:  800-388-2227.

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