Are Foreclosure Lenders an Artifact of the Past?
Are Foreclosure Lenders an Artifact of the Past?
Before 2006, it was ridiculously easy to qualify for a mortgage, no matter how bad your credit was. Even if you were in foreclosure, there were a number of foreclosure lenders who were able to offere financing on the basis of your home’s value. And with values steadily increasing throughout the 90s and early 2000s, almost everyone had a ton of equity.
Unfortunately, with the collapse of the housing market and lenders going out of business by the hundreds, such equity loans are more uncommon now. But there are still a handful of lenders — mainly hard money lenders — who can do foreclosure loans. The trick is to find one that operates in your state and having enough equity in your home to make it worthwhile for the investors.