Hi Hrvino ~

I imagine you walked away from your experience with many lessons learned and have a new found sense of control over your future.

To answer your question about how soon you can qualify for a mortgage, check out a blog I wrote on that very topic: "Home Ownership After Short Sale or Foreclosure". You will get the answers you're looking for and more. Follow the link to my website below and look in the "More News" section.

All the Best,

Barbara

Hrvino,

I'm sorry to hear about your foreclosure. I think many of us in the industry consult clients in your position about real estate and loans all the time but only a few of us have gone through what you have.

The current timeline to buy a house using FHA financing is 3 years. It's longer for conventional.

Remember to start building your credit now, as hard as it may seem. In 3 years, you may satisfy the condition to have a 3 year seasoning from a foreclosure, but you will also need credit history and scores to qualify as well. If you can't get an unsecured credit card, get a secured one. A local bank or credit union should give you a card if you make a deposit. Keep the balance low and the payments on time. Preferrably 25% of the limit or less at ALL TIMES. If you can, try to get at least 3 credit tradelines like this to start building credit. Then by the time you hit 3 years, your score will be high enough to qualify.

Also, check your credit report for any errors. You get one free one a year at the web reference below. It's not a company website. A bill was passed by the Federal government to allow consumers to see their report once a year for free. This site connects you to each of the bureaus for a free report. Each one will try to upsell you to pay for your score, but I wouldn't pay for the score yet. Just check for inaccuracies, which you can dispute on the bureaus site when you see the reports.

Good luck!

If the bank had been reasonable, you would still be upside down equity-wise. The silver lining to this cloud is that negative equity is off of your personal balance sheet.
Lenders can much more accommodating when there is a very large down payment. You say you still have a job with a good income, hopefully you can save up a strong down payment while you rent for a while.
If a cash down payment is 20% or higher, even a foreclosure on the record can be "worked around"
The catch to getting one of these "sub-prime" loans is one you have seen before: higher rate.
Unless you are a very high earner or miserly frugal it will probably take you two or three years anyway to save up 20% anyway in which time new loan underwriting guidelines will most likely develop to allow people who were caught up in the real estate bust to get back into home ownership.

You'll need to wait 3 years from July. The good news, he will too. In the meantime, if you decide to get owner financing, make sure to follow these steps (this applies to renting or leasing):
Take pictures with a date of interior and exterior of house. Pay with checks or money orders (something where you can keep a receipt. Don't pay cash. You'll need proof of rent later. Make sure you have a Realtor or Attorney look at the contract before signing it. If an apartment, make sure you can get out of the lease with no penalty if you decide to buy a house. If possible, on a house rental, ask if you can make the payment directly to the bank (and keep the receipts of payment). Again, pay with a check or money order. Too many people are taking the rent checks and paying for other things resulting in foreclosure and you're out on the street. It's better for you to rent with option to buy. If you lease, you are responsible for repairs to the home because you are buying it. If you rent, you are not responsible for repairs. If you lease, though, you may be able to lock in a sales price and earn some equity. If you decide to lease, get a Realtor involved.