Yes, you can buy a house before, during or after the foreclosure if you are able to pay cash. Otherwise, the damage already done to your credit score will prohibit your qualifying for any future purchase. The length of time before your credit is repaired will depend entirely upon your future faithfulness to repay your credit obligations. Therefore, renting will be your best option for the next 2 to 7 years.

Dear Racad -

WOW! I am working with a Seller in the exact same situation! We did market comps, photos, analysis, marketing campaigns, showed the home probably 40 times, presented two cash offers, and mortgage company declined both. We showed the lender that a foreclosure would net them significantly less than the current offers, and they still declined!

Unfortunately, a foreclosure on your credit report is a big hit, and it will take a few years to get past it. The best advice is for you to be certain that all your other credit is as close to perfect as possible - pay your credit cards and car loan and any other accounts on time. And hope that in a couple of years, lenders will be able to consider mitigating circumstances when considering folks for a mortgage who went through a foreclosure in this difficult economic environment!

Best of success to you!