More Americans Own a Home Again After Foreclosure, Bankruptcy

September 08, 2012 (Press-News.org) More Americans Own a Home Again After Foreclosure, Bankruptcy

More and more Americans are re-entering the housing market after a previous bankruptcy or foreclosure, Reuters reported recently. Many homeowners who lost their homes due to financial hardship during the Great Recession are finding that they qualify for a new mortgage sooner than expected, often within just a few years.

Over 4 million U.S. homeowners have gone through foreclosure since 2007, and an estimated 2 million more foreclosures are expected by 2014, according to RealtyTrac. Citing interviews with homeowners and real estate professionals, the Reuters report suggests a growing trend toward a return to homeownership among those previously affected by bankruptcy and foreclosure.

Rebuilding Credit After Bankruptcy

For most homebuyers who qualify for a new mortgage after the loss of a previous home, their return to good credit standing is no accident. The process of rebuilding credit and financial health after bankruptcy or foreclosure requires hard work and dedication -- but, as this new wave of homeowners has demonstrated, it can be done.

Filing for bankruptcy typically causes a significant initial drop in a person's credit score, and the filing remains on his or her credit report for seven years. However, for people who are unable to catch up on their debts, bankruptcy can provide an opportunity to break the cycle of constant late or missed payments that will otherwise continue to erode their credit scores. By eliminating debt, bankruptcy can allow these individuals to make a fresh start and rebuild their credit from the ground up.

After bankruptcy, the key to restoring credit health is creating a record of responsible money management by paying bills on time, reducing debt and using credit wisely. With time and dedication, this process demonstrates to potential lenders that the borrower can be depended upon to repay his or her debts. To learn more about bankruptcy and whether it may be right for you, contact a knowledgeable bankruptcy attorney in your area.

Article provided by Law Offices of Mark Girdner
Visit us at http://www.modestobankruptcyhelp.com/