Many people believe that the option of owning another home is eliminated once they go through the process of bankruptcy or foreclosure. Families going through a loan modification to stop foreclosure also wonder if they’ll ever be able to purchase a second home. The short answer: There are a number of lenders that are willing to provide mortgages to people with a less-than-perfect financial/credit history.

The most important thing to consider is that time is your friend after going through bankruptcy and/or foreclosure. If you allow yourself about three years to repair your credit and pay off some of your old debts. Here are some additional tips on purchasing a home after a few rough years, financially speaking:

1. Credit is the main culprit: Fixing your credit report is the most important aspect of restoring your positive financial status. Get a copy of your credit report and make a list of those items with a negative credit rating on your report, such as the time you were behind on mortgage payments.  If the issue has to do with late or missed payments, then make sure that from this moment on, you make all of your payments on time. If the issue has to do with unpaid debts, put together a plan to pay off some of those bills as soon as possible. This allows optimal time for your credit score to rebound before you attempt to purchase a new home.
   
   
2. Start rebuilding your credit with a secured card: Make sure your payments are timely. Using this card will demonstrate your ability to manage credit responsibly. Moreover, timely payments will contribute towards a higher credit score.
   
   
3. Research lenders that specialize in working with people in your situation: There are a number of lenders that specifically work with homeowners with past financial problems, such as bankruptcy or foreclosure prevention assistance.. Search the Internet and find a lender that has experience in this arena and can offer you a program that meets your needs. In most instances, online lenders usually focus on lending to people with damaged credit. Moreover, while there are some that have higher than normal interest rates, there are those that will offer potential homeowners a more manageable interest rate. Just be sure to search around and compare interest rates, terms, conditions, and other particulars that are important to you as a homeowner.
   
   
4. Pay attention to the details: The last thing you want is to be stuck in a predatory lending situation and unfortunately, less than reputable lenders often target borrowers with a troubled financial history. Don’t get pressured into taking on a loan for more money than you can afford and be sure to read all of the fine print that accompanies your loan documents. Don’t be afraid to ask questions and if the lender has quick decision, high-pressure tactics, keep looking.