I'm sure other agents have posted their best advice as best they may be aware , but recent changes in the waiting period for foreclosures have changed .This special program allows only a 1 year waiting period after foreclosure ,so you may be closer than you think to being qualified .I'll get back to you on the name of the program and the credit score info.Also if you give me the zip code you're intersted in buying I could send you a link to Homepath properties (Fannie Mae ) listed that you could
buy with only a 5% downpayment and get a break on closing costs .
if i could recommend anything, look for a private lender such as friend or family member as that is not a huge amount of money. Or look to save and buy it cash. Your credit is hurting you, bankruptcy is not the worst thing but you must wait at least 3 years which you have done. My advice would be, if you could, build that credit score to the high 600's and try again
Short answer yes. There are a few banks willing to lend with scores as low as 550 but these are subprime mortgages and the terms are much less attractive. You really would be much better off focusing your efforts on raising your credit scores. This isn't always easy and can sometimes take some time but there are both private companies such as Credit Karma that can help, and some states also offer credit counselling and assistance repairing bad credit scores. I'd suggest Googling Indiana State Credit Assistance or Getting help with low credit scores Indiana and see what you come up with. There is a program for home buyers like yourself here in North Carolina, but it's state specific.
In the long run getting your scores back up in the range of 700 will help you in a lot of ways besides getting you a mortgage. I know if you buckle down and focus on it you'd be amazed at what you'll be able to accomplish in a year.
I feel for you. That's a tough position to be in, but it's not that unusual in our "new" economy.
The challenge for you will be to put a substantial amount of cash into the mix. The more you put up initially, the less risk for the bank and hence you might find a sympathetic banker (a bit absurd sounding...) or credit union.
The Buy on Contract route might work but be weary of any deal that is too good to be true.