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Profile picture for tiffnigh

Is it possible to be considered for a mortgage before the 3 year waiting period after foreclosure?

My husband and I included our house in our bankruptcy which was discharged in May of 2010. The bank did not take ownership of the property until the fall of 2012. The transfer out of our names took place January 2013. We are currently in a lease purchase situation and want to be able to purchase the property pursuant to our agreement. The landlord has already extended the option term for us, but now it is even later than we thought. We were originally told that we should be fine 2-3 years after the discharge date. We are afraid that he will put it on the market when our term is up if we arent able to get a loan. Do mortgage lenders ever consider the length of time it took the bank to do something with the property? Is it possible for us to get financing with a cosigner? We have a car loan and credit cards and have been on time 100% of the time. My credit score is 672.
  • August 08 2013 - US
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Answers (3)

Profile picture for John Paunan
Unfortunately, since this was a full-fledged foreclosure, you're going to have a pretty long wait before you can qualify for another mortgage. Foreclosures are treated more severely than bankruptcies because they directly impact the type of indebtedness mortgage lenders handle. You're going to be looking at 3 years for an FHA loan from the date the foreclosure was finalized. 
  • August 08 2013
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There are more and more lenders who are considering and, have already some loan products for people like you, but is not one size fits all, it is on a case by case basis.  If you have more interest in learning about which lenders can help you, [self promotion deleted by Zillow moderator. Please see our good Neighbor Policy for posting guidelines] 1 day after short sale and 1 day after foreclosure
  • August 08 2013
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Are you or your husband eligible for a VA loan?
FHA financing may allow an exception less than 3 years... if the foreclosure was due to documented extenuating circumstances. The death of a wage earner or a serious illness could qualify you for the excpetion. Re-established credit must also have been obtained and most lenders look at your current credit score as well. There are many issues involved... please contact me directly for more details.

  • August 08 2013
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