If they have a little cash a lease option or land contract is very attractive. They have the ability to write the contract today while prices are low. Because of the risk sellers usually want about 5% down but there are deserate sellers out there who will take less.

Rent, lease with option to buy (rent-to-own) or land contract. Depending on the reason people went into foreclosure, some sellers may be willing to carry the financing for these future home buyers and let them move into a home under the above terms.

Renting is an excellent option for these folks. It's probably half the cost and they're not going to lose thousands of dollars. Good Luck

The most obvious option is renting.

A second option is moving in with relatives.

A third option is purchasing with a lease-option. (Lease for awhile, rebuild your credit, then purchase either with owner financing or with conventional financing.)

Hi Jane, unfortunately their options for housing are limited. Obviously they won't qualify for another mortgage, so they will be left to rent. Renting won't even be an easy thing because most landlords run a credit check. Once they know you've been foreclosed on (more so if it's recent) they may be skeptical to rent to you or they will ask for hefty deposits or advance payment for rent. It's a very difficult and sad situation.

Unfortunately these folks might have to back to renting. It will be tough to qualify for another mortgage if they've defaulted on the current one.

Jane only a couple federal back,that help,most are just air and costly.

I think that if you have a little cash, buy a propety with cash and fix it up the way you want it, put in a litlle sweat equity. and you will have a house with no mortage. and fixed the way you want it!