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The mortgage application process may seem intimidating even for someone with a perfect rental and credit history. For the first-time homebuyer, a record of positive rental history is very important and an eviction may doom their application.
Evictions happen for different reasons. Not all of them have the same effect when seeking a mortgage. Below, we have provided four smart strategies you should consider.
1. Be Honest About Your Situation. Every circumstance is different. Before committing a large sum of money to a mortgage, the lender needs to know what happened. Some evictions occur because of non-financial situations. Always be forthright.
2. Understand the Law Where it Occurred. Eviction laws vary. A mortgage company will need to determine how the laws may differ from the law in areas where it offers loans. Did you attend eviction hearings? Did you do everything possible to comply with legal requirements?
3. Review Your Credit History and Clear Your Record. Credit history matters. So does an improved credit score over a period of time. Carefully review your reports for any discrepancies. Delinquent debts that collection agencies handle are reportable, as are civil judgments. They may take seven years to clear even if you have fulfilled the obligations. In some jurisdictions, it may be possible to have an eviction expunged, but you will need to consult with an attorney or Legal Aid organization familiar with landlord/tenant law in that area.
4. Strengthen Your References. Gather positive references from other landlords, as well as employers and others who can speak on your behalf. Try to make amends. Determine if another family member may be able to co-sign and accept shared responsibility.
Contact Midland Mortgage Corporation today. Let’s discuss your situation and possible alternatives. We may be able to assist you.