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A loan before 3 years after a foreclosure anyone?

Established Member

A loan before 3 years after a foreclosure anyone?

My loan officer feels that it will not be a issue, I mean it has been 2 years 7 months and I could not work at the time(foreclosure date is August 08) due to 2 herniated discs in my back. At the time the job I was on was making my medical condition worse doing hard labor and my wife and I were going through a separation at the time. My wife and I have since fixed any and all marital issues we had and even had another baby. I received a promotion at work and no longer do any sort of  labor. I am also making more money now than I ever have! I fixed any credit issues I had and scores are all mid 600's I have 2 CC 1 just a year old the other a few months as well as a few car installment loans dating back to 2006 with only one 30 day late(car late 1x never late on the CC). After taxes I get a direct deposit of $1100 each week and $300 of this goes directly into savings. We currently have no debt and have $9000 in savings and counting.... Our LO is currently doing a rapid rescore and tomorrow I will do a loan application, he also said the foreclosure is not considered in the automated underwriting? But I do not want to run into any issues when we do find a house whenever this may be. I admit my wife and I have both been making posts here and there relating to this issue but this is for loan officers who have dealt with similar situations and have had positive outcome as well as those who have been in the situation themselves. I suppose my main question is can we get a pre approval in your opinion? It could be 2-4 months until we find a house so it will most likely be at the 3 year mark when we do actually close...I have no collections just a 4.5 year old paid medical for $190....

Message 1 of 5
Established Member

Re: A loan before 3 years after a foreclosure anyone?


Message 2 of 5
Frequent Contributor

Re: A loan before 3 years after a foreclosure anyone?

We are in a similar situation. Our foreclosure "timeout" will be over by May 19, 2012. We were told that we could start a new construction contract, paid for the lot, and got "prequalified". Before we close, they will run our credit again. We are thinking the house will be done being built by June\July timeframe. Our score was in the 700s, they have run a couple of inquires and  it brought our score to 671. By the time we close, I am sure the  score will go back up - but they are going to do another one to two inquires spaced  out (which hurts...) I don't know another way around  it. If you aren't building, I would wait until after you find something and after your 3 years  are up - that way they don't pull you credit too many times like they have done to us.


Good  luck.

05/12: approx 680 across the board
04/08 EQ: 730 TU: 748 EX: 718
03/08: EQ: 713 TU: ? EX: ?
12/07: EQ: 689 TU: 711 EX: 721
Message 3 of 5
Established Member

Re: A loan before 3 years after a foreclosure anyone?

You are right ! I was told to wait for 3 years as my Foreclosure date is Feb 26th 2009. I have a charge-off due to Foreclosure by Citimortgage.


When I asked a LO he told come in May 2012 since the CO recorded on APR 30th 2009.  ( 3 years for SOL period to complete ). He told loan will be approved either FHA/USDA or conventional loan.



Message 4 of 5
Valued Member

Re: A loan before 3 years after a foreclosure anyone?

I have a friend who works for a mortgage company.  He said that he is sure that I would qualify for a USDA loan and said that he knows of others who have been approved 2 years after foreclosure.  It also depends on what the rest of your credit report looks like and your employment history.

Message 5 of 5