The good news is that you could buy a property at any time after a foreclosure; the problem is obtaining financing for the property. Please note that my answer will be based on today's lending guidelines and that these guidelines will change over time.
If you could pay cash for a home, you could buy it; but how many people do you know that could do that especially after going through foreclosure so recently?
Your best option, right now, would be to buy a property on a contract for deed, land contract, or with a mortgage held by the seller. Any individual is free to lend to you on the basis that they see fit and I am sure that there are people out there willing to work with you. The downside is you can expect to need a sizable downpayment, it may be hard to find someone offering this financing, and the interest rates will be higher.
The next option would be
FHA financing. If there was an extenuating circumstance that was beyond your control, that is not likely to occur again, and have re-established good credit; it may be possible to get an FHA loan as soon as 2 years from the foreclosure. FHA normally requires 3 years from a foreclosure if you can't prove all of the previous items. With this option, you will get a near market rate and low downpayment.
Answer Submitted on Thu, Nov 27 2008
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