Dear Jeanne,
You are not alone in your situation at all! However, the one advantage you do have is that you have time to do your research. I would suggest you look into purchasing a short-sale or an REO in a neighborhood that you would like to live in. There are many areas I would suggest you look into such as the Pasadena area or even a little more to the east. Right now is a great time to buy because FHA loans have expanded the ability of the southern Californian to own a home.
With regard to financing help, I have a great contact at a direct FHA lender (where you won't be paying broker fees) who would be more than happy to discuss financing arrangements with you. His name is Houtan Hormozian of American Guardian Home Loans. You may reach him directy via email at hhormozian@amguardian.com or via telephone at 877 242 5215.
Also, I would love to speak to you about areas that are great to live in and within 30 miles from Downtown LA.
Please feel free to visit my website and contact us! - Mon Aug 3 2009, 11:40