Hi Katie
I'm so sorry to hear about your situation. The good news is that, since your BK and subsequent foreclosure were brought about due to extenuating circumstances as opposed to financial mismanagement, you will probably not have to wait as long after the foreclosure to be considered for a new mortgage (3 years from sherriff's sale as opposed to 5 years for financial irresponsibility). The bad news is that you'll still have to wait.

However, if you have to be in a home you can always look for a land contract or rent-to-own type situation. No traditional lender is going to give you money right now and any "hard money" lender out there is probably going to gouge you on the interest rate and require a very large down payment (20% or more). I'd recommend that you gather all your pertinent information on the circumstances behind your BK and foreclosure right now so you can document to a lender later what exactly happened. In addition, while you are living mortgage free for a year, take a look at your budget and what you spend and try to tighten the purse strings and find ways to save as much money as possible. Try to re-establish credit as soon as possible so you can work your way back to a respectable credit history as well. In your situation, NO DEBT is not good. In 3 years or so you want to be able to solidly demonstrate to a lender that you can manage credit and your monthly obligations responsibly and also demonstrate a strong savings pattern as well.

Best of luck!