As far as Michigan, maybe rent or find a lease option for a while until you get back on your feet. It will take a few years to get your credit rating back but then again you say you have 50% down. Have you spoken to a mortgage company? The question is a little confusing without more information.
Pamala Bava, Realtor
Real Living Kee Realty
Government backed loans may not be an option for a while, but hard money or private investor loans may be available with that type of equity. You will pay higher than conventional rates and fees, but it will go a long way to rebuilding your credit after the foreclosure.
Contact mortgage brokers in MI and explain your situation and what you are looking for. With half down and such a low balance you may also find some willing owner financing. You'll need an agent willing to work a little harder than normal to find a willing seller and your home choices will be fewer, but it may be possible. Good luck in your move.
Has there been a foreclosure judgement? Do you think you could either sell this property or do a short sale? Foreclosures do stay on your credit history for at least 3 yrs. Therefore, If possible. II would normally advise my clients to do a direct sale (if the property is saleable and they have time), or do a short sale (It has not been established how to report a short sale on your credit report.) I assume that you've been late, those normally gets taken care of rather quickly.
With 50% down, you do have some of those developers who will be willing to hold your mortgage, but be prepare to pay a high a high interest rete.