Sorry the bluntness, but I have seen too many consumers spend a lot of time and money trying to get a loan that was never a loan in the first place. Time heals all and you will be sucessful in a year or two. Best to you!
Depending on what your project is you may be able to finance it with private/hard money and then take the cash out of your primary residence later when you qualify and pay off the hard money with those funds.
And you can't just go out and get a loan, but have to pay a higher interest rate, if you had a recent foreclosure. All lenders (outside of private money investors) have foreclosure seasoning guidelines that must be met.
Since, you have quite a lot of equity in your home / condo, you should be able to refinance and
Get money out for your Project in mind. The rate will be higher due to your past foreclosure, but it
Will be doable.
If the foreclosure shows up on your credit report you will not be able to refinance with a conventional or FHA loan. Foreclosure seasoning is not two but actually at least three years for FHA (or longer for a conventional loan) so you'd have to wait until 08/20/2012 for an FHA loan (or even longer for a conventional).
There could be a couple of exceptions, however...
If the home was a pre-foreclosure or short sale and you have at least 20% equity conventional guidelines only require two years. But it would have had to be a pre-foreclosure or short sale, not a full foreclosure.
The other is VA. VA Guidelines are different; foreclosure seasoning is two years regardless of how the property was lost. If it was a full foreclosure and you have VA eligibility this will be the way to go.
There are many options for you.
You are making a great start and asking questions to determine your next steps.
Don't feel like you are the only one in this situation. You are one of many who are in this very set of circumstances or who are also on their way out of them..
Your next step is to talk with a knowledgable lender who works for their clients
and can walk you through your options as stated by many people below.
1. Financing in 2011
2. Refinancing Condo
3. Cash for your project
Ask questions, compare answers, talk to several people.
Validate those responses and do what is right for you to move forward in the right direction.
Please call me and I will provide you with several trusted resources
in the Sacramento area.
Keller Williams Realty
CA DRE 01872795
Give him a call and you will get all the answers to your questions.
You might try calling Dan Tharp at Comstock Mortgage: 916 247 1470.
Lyon Real Estate
Do it in person not over the internet or phone, and make sure you understand what you are getting into.