In mortgage lending, a "preforeclosure" usually refers to a short sale - where you owe more than what you can sell your home for and your mortgage lender agrees to accept a lower payoff amount than what is actually owed. Was that your situation? Or were you just behind on the mortgage payments severe enough for your mortgage lender to start preforeclosure proceedings, but you were eventually able to sell it prior to foreclosure and were able to pay your mortgage lender in full?
It sounds like the latter, so in that situation you just have mortgage late payments, and will need to wait until they are long enough ago before you can qualify.
With Fannie Mae loan programs, loans with excessive prior mortgage delinquencies are not eligible. Excessive prior mortgage delinquency is defined as any mortgage tradeline that has one or more 60-, 90-, 120-, or 150-day delinquency within the 12 months prior to the credit report date.
Freddie Mac loan programs look at payment history differently though, and states direct verification of Mortgage debt, rental payments and other debts not shown on the credit reports are typically not required if you have received an "Accept" response through their automated underwriting system. So that might be your best route to get approved at this point.
FHA financing requires your loan to be manually underwritten if there is any mortgage delinquency within 12 months of the case number assignment date or more than two 30 day late mortgage payments within 24 months of the case number assignment date and it's not reported to your credit report. The case number assignment date happens once you have an accepted offer. When an FHA loan is manually underwritten, you need to have all housing and installment debt payments on time for the previous 12 months and no more than two 30-dDay late mortgage payments or installment payments in the previous 24 months.
When did you sell the property?
There are non-traditional mortgage programs, usually referred to as "Non-QM" mortgages, that can approve people with mortgage late payments in the past 12 months, but will require larger down payments and have higher interest rates.
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