I had my home foreclosed last June.Will I be able to get another mortgage in the future?
Unfortunately, foreclosures are not an uncommon occurrence these days. For the one year period ending in May 2008, statewide foreclosures were up 140 percent. In some Massachusetts counties, the rate was up as much as 175 percent.
According to Rich Shapiro, from the Asset Mortgage Group, you will have to wait five years from the date of foreclosure to qualify for a Fannie Mae mortgage. The prohibition period for Federal Housing Administration (FHA) loans is a little more lenient -- just three years. Also, if the foreclosure was due to "documented extenuating circumstances beyond the control of the borrower" you could be considered by the FHA in less than three years. The extenuating circumstances would generally have to be something like a death or grave illness and you would need to fully document the situation for the underwriter's review.
As is the case with all mortgage loan agencies, good credit needs to be re-established. Consult with a mortgage professional about your particular circumstances -- you might find that you can get another loan sooner than you expected.
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