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Damaged credit a dilemma for lenders

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Editor's note: The loss of homes, jobs and wealth, coupled with an environment of tighter lending, has barred some consumers from owning a home again for at least several years. This article, Part 3 of a "Rebuilding Homeownership" series, explores whether lenders will make allowances for borrowers with checkered credit histories. Part 1 explored the scope of bankruptcies and foreclosures and the impact to would-be homeowners, and Part 2 explored the assistance that real estate agents can offer in helping consumers get back on firm financial footing. While bankruptcies and foreclosures could lock millions of would-be homebuyers out of the real estate market, the long-term impacts may depend on whether lenders are willing to make allowances for previously responsible borrowers who lost their home through circumstances beyond their control. But ask lenders if, when the economy recovers, they'll be willing to make allowances for borrowers who may have been victims...