Can I forego the conventional waiting period after a foreclosure if I have a sufficient down payment?

This would be up to the underwriter making the decision on your loan (FHA & VA). If you can provide solid documentation that shows the foreclosure was clearly out of your control, then it is possible (although unlikely). This would be like a death of a wage earner, or a medical situation. If the foreclosure falls in this category, the best route to go might be to consider an FHA loan. FHA and VA underwriters have the ability to consider this option. I am not sure if it is possible on a conventional loan, but it is worth a try.

If your looking at conventional financing, then the answer is no.. Had you done a short sale, then you would have only needed to wait 2 years for conventional financing with 20% down.. However, with a foreclosure, then your only option is VA, if you have VA benefits, then 2 years, and FHA, which is 3 years... This goes by the date the property was transferred out of your name... not the day you moved out or handed the keys back to the bank.. We have seen scenarios where the home owner moved out, and the lender didn't foreclose for 2 years later.. for them, the clock didn't start until 2 years after they moved out... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Sadly, you are not alone. Everyone who suffered a foreclosure suffered a financial hardship, temporary or otherwise. The fact that you have recovered is admirable, and you can always ask, but it is likely underwriters will not see your situation as one of those "Extenuating Circumstances", meaning you will still have to wait the mandatory waiting period before any new loan will be considered. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

FIRST, who was you bank./ servicer? when was the forclosure? when was it out of your name? linda yourloanpartnerforlife@live.com i also work with private money lenders

Down payment will not change the waiting period after a foreclosure. If you use traditional financing, then you will ultimately have to wait the 3 years before you can be considered for a new home loan through conventional lending . But here are some alternative ideas that may interest you. If you want to purchase a home, you can always consider "hard money loans" which are high interest rate loans provided by private investors. Typically, the hard money lender will provide up to 60-65% of the purchase price or appraised value. This may allow you to purchase your home today and allow for the time to pass to where you can refinance into a conventional loan after the foreclosure waiting period. Another option is to approach some for sale by owners and see if the seller would be open to "owner financing". With owner financing, you and the seller can negotiate terms and rates and once the two of you agree on that, you connect with a local title company to write up the mortgage and note for the loan. These are just a couple suggestions. I hope you the best. Sean

For a regular conventional loan (not a hard $ loan) I would say no. It is a credit matter not a Loan To Value matter...therefore the down payment isn't the issue. The credit is the issue.~pogie

Very unlikely.

You don't say how long ago it was, but generally speaking there are some exception possibilities. With that said, it is near impossible to get approved for an exception. Simply put, no one wants the risk... Contact a local non-bank licensed Loan Officer. Let them review your application and see if there is a fit for you somewhere.

No, a large down payment doesn't help. However, if the foreclosure occurred due to a situation that is highly unlikely to occur in the future, and not your fault, the waiting period can be reduced to 12 months with FHA. Loss of job or illness are two situations that qualify, divorce does not. You'll need to document your situation, and have all the supporting documentation, and your file will need to be manually Underwritten.

I agree with those suggesting you talk to a highly knowledgable mortgage officer and let them review your situation. Generally there is no exception. If you have a really well documented hardship there could be some flexibility but probably not. Some smaller local lender offer a portfolio loan where they do not sell it to Fannie or Freddie, that may be your best option. Good luck.

This would be up to the underwriter making the decision on your loan (FHA & VA). If you can provide solid documentation that shows the foreclosure was clearly out of your control, then it is possible (although unlikely). This would be like a death of a wage earner, or a medical situation. If the foreclosure falls in this category, the best route to go might be to consider an FHA loan. FHA and VA underwriters have the ability to consider this option. I am not sure if it is possible on a conventional loan, but it is worth a try.

Conventional waiting periods are firm. FHA and VA do have more flexibility. If you really want to get into the house, you can consider a private money loan up to 65% LTV and refinance into a conventional loan once the waiting period is over. If you would like more information on how to get this done, I would be more than happy to walk you through this. I can also recommend the lenders you can use to keep the costs down. Happy New Year and good luck!Kevin PrinceSVP Liberty One AMCkprince@liberty1amc.com858-926-8904