Seeking Home Equity Loan - have a foreclosure on credit from 2 yrs ago

[Anonymous]

We have a foreclosure on our credit scores which is 2 yrs old.  This was from a rental home.  Since then, we have sold our primary home and purchased a new primary home and were able to pay all cash for the home.  With poor credit still and a foreclosure and yet 100% equity in a home... any thoughts about qualifing for a home equity loan. Is there a possiblility for a home quity loan or do we need to wait out the full 3 yrs for the foreclosure.  

Thank you!

[Anonymous]

I would check with local credit unions to see if they have a portfolio product for you.  With that kind of equity, it makes common sense.  I know a place in Wisconsin that would if you lived around here.  FHA cash out would be 3 years from the sale date.  Good luck!

[redbeard]

I'm not an expert on this, but if you own the home already, it shouldn't be impossible to get an equity loan. You don't have to comply with a lot of rules around government backed mortgages, so the waiting periods for foreclosures won't apply.

It won't be easy though. Depends on what else is in your credit file. It also will be limited on how much you can get. I would assume getting up to 50% or so won't be terribly hard, above that, the risk grows.

It also won't be cheap, but in a couple of years, you can probably refinance and fix that.

As long as you don't have an unlawful detainer to go with a foreclosure, you should be able to find at least a hard money loan somewhere.

Dan