Unless you can sell the current home, you would need to be mindful of the impact the modification has had on your credit, and you'd need to steer clear of the "buy and bail" guidelines lenders have put in place and which would be considered if you intend to retain the current home while purchasing a new one. Not sure where your interests lie. The video below explains buy and bail in simple terms.
It may or may not be possible to qualify to obtain a loan but I'd lean towards the doubtful side - contrary to the rosy and optimistic replies you may see.
Unfortunately a loan modification is viewed by lenders as a derogatory credit event. In addition, and you don't mention this in your post, many consumers who process a loan modification end up with a string of late payments on their credit report as well.
Would it be fruitless to try? Never. Experience has taught me there can often be options where we thought there were none. I just don't want you to get the impression it's going to be a slam dunk.
It only costs you about $17 for a lender to obtain a credit report for you, and from that we can analyze how badly the loan modification has impacted your credit. If you have specific questions about obtaining the credit or you'd like our help just contact us via our profile. While I am physically located in Spokane, WA about half my clients are in CA.
Before any of that you need to know how you will be exiting your current home. If it can't be sold to pay off the current loan (short sale) then you've got an entirely different circumstance.
We are short sale specialists and work with a skilled lender who helps people purchase again following short sales if they meet certain criteria. Our short sale success ratio is extremely high. If you would like more info, please contact us. Good luck!
Ariel & Karen
Is is so stressful. I would recommend that you consider what is really important to you and make a plan that relates to your personal goals. If homeownership is important to you, meet with a lender and go over your financial situation as it relates to homeownership, of this home or another. Are there other adjustements you can and want to make to keep this home . Are you able to rent a home where you want to live for much less than your home loan currently costs you? I dont professionally spend a lot of time looking at the rental market so I was surprised to learn what rental rates were when I recently helped clients determine what to rent their own home for. Credit repair is a process, it will take time. Good Luck and good for you to be out there asking for resources and assistance.
There is a great interactive video on this website, which walks you through your options. Your loan mod story is unfortunately all too common... Good luck with this.