First of all I want to thank all the experts that respond to people questions. It is very hard sometimes to get answers.

I have a couple questions:

1) I went through a divorce in 2007 and were single income, so I had to do an deed in lieu to meet my child support payments once the divorce was final. This was all happening as the housing market just started to tank. My question is, the deed in lieu was finalized in Feb 2008, how long will I have to wait until I can buy a house again? Also, what should expect when I try to start the process?

2) I have found a home that the owners are willing to consider a lease to purchase or subject to existing mortgage. My question is, when I go to purchase this property is their anyway I can structure the lease to purchase contract so that when I go to get a loan it would be considered a refi, versus new purchase? My thought is it might be easier to get approved. Even with the deed in lieu on my credit, my score is still over 710, but I still get the feeling I am in a bad spot.

If anyone has input please let me know....as I need all the help I can get.

Thanks in advance! 

As the current guidelines stand, you should be able to get an FHA loan in Feb 2011.  Expect to need proof of the finalization and acceptance of the deed-in-lieu.

You could do a contract for deed (also known as a land contract) rather than a lease to purchase contract.  Make sure to have the contract for deed recorded at the county to make things easier to be set up as a refi in the future.  I would anticipate several more years of tight guidelines and possibly even some more tightening (uggg, I hate to think that) of those guidelines.  The contract for deed is a way to establish an ownership interest in the property.  You may want to consult a real estate attorney to set it up.