Approval after foreclosure

[Anonymous]

Hello:

I am new here, which is probably obvious....but, I wanted to ask if anyone (or knows of anyone) who has gotten a mortgage after foreclosure?  I realize the mess many have been in is recent, but I was just wondering.  I had a foreclosure a year and a half ago (date of sale) and have worked hard to improve my overall financial health, increased my credit score by 71 points, but I am still looking ahead and hope that one day I will be able to purchase again.

Just wanted to know if anyone has experience this [buying after fc or if anyone knew of anyone who had).

Thanks.

[IOBA]

Through the general rumor mill, I have heard home buying after foreclosure is doable 2-4 yrs after sale.

How much of a down payment, I am sure, will play into the picture.   Can you save up a large down payment, say 10-20% down? 

You will also want to have clean credit (no lates or missed payments or collections) for 12-36 months.   The usually is a clean 2 yr history.

So yeah, it's doable.     

[Lel]

---

@Anonymous wrote:

Hello:

I am new here, which is probably obvious....but, I wanted to ask if anyone (or knows of anyone) who has gotten a mortgage after foreclosure?  I realize the mess many have been in is recent, but I was just wondering.  I had a foreclosure a year and a half ago (date of sale) and have worked hard to improve my overall financial health, increased my credit score by 71 points, but I am still looking ahead and hope that one day I will be able to purchase again.

Just wanted to know if anyone has experience this [buying after fc or if anyone knew of anyone who had).

Thanks.

---

Hello, and welcome to the FICO Forums.

The waiting period after foreclosure varies with the loan type sought.  For conventional FNMA-backed mortgages, I believe the waiting period is still 7 years (the reference I'm looking at is over a year old; don't know if anything's changed).  For FHA loans, the waiting period is 3 years.  I'm not certain about VA loans, but I recall someone saying that it's 2 years.

If there were extenuating circumstances that led to the foreclosure - which generally mean the death or serious illness of a wage earner, not things like divorce/relocation/adverse market conditions - the waiting periods may be waived (for FHA and VA loans) or shortened to 3 years for conventional loans.

[Anonymous]

Thanks for the responses. 

I have researched the conventional vs. FHA post-foreclosure info. I am hoping that it will only be 3-4 more years before I can buy. I am almost 2 years post-foreclosure (or, date of sale). 

I was just wondering, since this meltdown, if anyone who has gone through a foreclosure has been able to get a new mortgage.  It seems that for some, the three-year waiting period must be over, or close, and I was wondering if anyone has had success.

Thanks!

[Elated]

Hi Dconley. Just to let you know, I am a perfect example that this can be done. My foreclosure occurred in January 2009, and I had this very same question. Currently, I just had a new home built and am scheduled to close on January 17, 2012. I am doing FHA financing, and they require a 3 year minimum post-foreclosure. Hence the reason I have to wait until that time to close. From what I'm being told, I have to wait until the 36 month maturity date passes, which is on January 9th. The home was just completed, so I have to wait a few more weeks, which I am not happy about, but, at least I've gotten this far. 

So, it can happen...I am living proof! The only thing I can suggest to you at this point is to keep all of your credit squeaky clean, pay everything on time, and make sure you have had no late payments since the inception of your foreclosure date.

I hope this helps. I wish you the best of luck!

[Elated]

Sorry dconley, I failed to mention in my previous post that I only had to put down the required 3.5% that is required by FHA.

[Anonymous]

Thanks so much for responding.

Congratulations, Elated!

[Elated]

You are most welcome dconley...Best of luck to you!!!

[twojton01]

Hi - Question...  Is it based off your close date of the foreclosure or filing date?  Thanks!!

[StartingOver10]

The date is based off the foreclosure sale date when the title/deed actually transfers from you to the lender, not the filing date.