Being in real estate, I get this question asked many times. ” I had to foreclose my home years back, do I have to wait for 7 yrs before I can buy my home again”? 
According to Fannie mae rules, lenders normally requires you to wait 7 yrs before re-applying for another home loan. These rules change periodically so check out Fannie mae’s site for most current info.
However you can own it sooner, if there were any special circumstances beyond your control like job loss, medical emergency, divorce etc. You do need to re-establish your credit back before shopping for a new home. Credit scores get affected once someone forecloses and it can be upto 200 points or more. If you are thinking of becoming homeowner again, you can do many things to re- establish yourself which includes:
- Paying your bills on time.
- Keeping your cr card balances low.
- Saving money for downpayment and as liquidated assets.
- Finding a steady job (if job loss was the reason for foreclosure) and stick with it.
The foreclosure will stay on your credit for seven years but with time and better money management skills, the credit scores will come back up. Once you have the scores needed, contact your local lender or mortgage broker to find the right loan for you. You may still have to wait 3 to 4 yrs and show a good history of your credit management skills before applying for a mortgage again.
Persistence, positivity and discipline will once again open the doors for you to become a home owner.
Do not forget to check your credit annually.
Now question is: Are you ready or do you plan to be a homeowner again?
If yes, then make a plan and stick with it!
