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Foreclosure usually begins after the borrower has missed three consecutive mortgage payments. Then, the lender will record a notice of default against the property and unless the debt is satisfied, the lender will foreclose on the mortgage and proceed to set up a trustee sale, where the property is sold to the highest bidder. "Foreclosure is one of homeowners' biggest fears," says Michael Litzner, Broker of Century 21 American Homes. "Not only have they lost their home, but they worry they may never be able to buy again." However, if your property has been foreclosed on, it is possible you can buy again--but a lot will depend on your circumstances and the mortgage interest rate you are willing to pay. "Generally, most lenders will consider your request for a home loan two to four years after your foreclosure," says Litzner. The past two years are what most lenders focus most heavily on, and foreclosure can lower your credit score by anywhere from 200 to 300 points for the first two...
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