Question by roadrunner4854: After foreclosure, how long will it be before I can apply for a new mortgage?
I am being foreclosed on. My wife was unable to work during pregnancy and for a few months after the baby was born. We fell behind on the mortgage and were not able to catch up.
I found another home to buy with owner financing that we can afford. However, the seller wants us to refinance in two years.
We have paid everything on time except the mortgage in foreclosure. We have minimal debt. Credit Card is paid off monthly and our car notes and a small installment loan have always been paid on time.
Will we be able to refinance in two years if we continue to make all payments – including the new owner financed note – on time?
Answer by Beverly S
FHA requires 3 years after the date the home is taken out of your name. Conventional loans are 4 years. Keep in mind the time frame on foreclosures aren’t quick. It could be months after you leave before it’s out of your name.
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