A few years ago, I did a mortgage for a young couple buying their first home. I remember how excited they were, but it didn’t last. John was killed in a motorcycle accident and Marlene was left to raise their son on her own.
Unfortunately, she could not maintain the mortgage on the home and eventually the home was foreclosed and she had to file for bankruptcy. I had not heard from Marlene for a few years, until yesterday.
She called to say hello and ask if she could ever own a home again? She had re-established credit, two small credit cards and a car loan. I ran her credit, it was good enough to qualify for an FHA or USDA mortgage. She was working at the same place for four years.
She was paying $1,145 for rent, so a mortgage payment in the same area would be comfortable for her. I handled a preapproval letter for her and she is now home hunting. I referred her to a Realtor and home inspector, to make sure she is properly represented throughout the process.
There are so many Marlene’s out there. Most are not even aware that they can or will be able to buy a home in the future. This is just one of those situations, when bad things happen to good people.
This post comes from Marilyn Lewis of MSN Money.