En español | Q. My sister went through a foreclosure. Will she ever be able to own a home again?
A. In time, perhaps. A foreclosure can reduce a credit score by 150 points and stay on a credit report for seven years.
See also: Boosting credit, reducing debt.
You can rebuild your credit score and own a home again. — Photo by Stephen Lam/San Francisco Chronicle/Corbis
But here are ways to help a comeback:
- Work at a steady job.
- Build up at least six months of savings to show you could pay your mortgage if you lost your job.
- Don't max out credit cards.
- Pay your bills on time.
Fannie Mae, the mortgage giant, generally allows new loan applications in three years if a foreclosure was due to job loss, divorce or unexpected medical bills.
You may also like: Take AARP's savings challenge. >>
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