Is it possible to purchase a home with another one in foreclosure?

Unfortunately it's 3 years from the home is transferred out of your name.. If you filed BK, then the waiting period is 2 years for FHA financing, however if you have a foreclosure, then it's 3 years from the date the home is taken out of your name. Since technically you still own it, you could contact your lender and tell them you want to short sell it.. this way you can get it gone right away rather than waiting on the bank.... there was also some talk of FHA either reducing or eliminating the mandatory waiting periods for foreclosures or short sales.. Nothing solid yet, just talk, so stay tuned.. 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

You can always buy a home if you pay cash. To get a loan you will need to follow the "seasoning guidelines", or waiting periods. You can do a search online to find out the waiting periods for different types of loans, but each lender can be different as well. For bankruptcy the shortest waiting periods are 2 years for chapter 7 and 1 year for 13 and it starts from the discharge date. You have to wait to apply until that waiting period is passed. Many times bankruptcies and foreclosures happen together, but the waiting periods still need to be followed for each event. Foreclosures are a longer waiting period which starts the day the home is taken out of your name and in certain circumstances you can get a loan as soon as 4 years after the foreclosure. If you have a BK and a foreclosure then you have to wait the longer of the waiting periods. I hope that helps.

Consider a lease, with option to buy. That way, you can wait out the 3 years, while building equity in your new home. When your credit has improved, apply for a refinance. For additional information, contact me at 503-620-2239.

Until the property is deeded out of your name, the clock doesn't start ticking in terms of your waiting period to buy your next home and qualify for a mortgage. Watch the date carefully when the sheriff's sale actually occurs - that's your "date."

I like Dave's answer the best. That is your best bet to build equity while waiting through your 3-year seasoning period. Otherwise, save up and make an all cash-offer, which I'd imagine being very difficult especially if you have to rent at the same time.

Yes, you will have to wait out the 3 year period but I wanted to give you a word of caution as well. By showing a foreclosure after a bankrupcy, this will be a significant red flag to an underwriter. Lenders look really hard at the credit activity after a bankrupcy and it becomes increasingly difficult to get approved as you build up derogatory items that happen after the bk is filed. My suggestion to you would be to not allow anything further to ding your credit, and be very careful about any other derogatory items that will show up after your bankrupcy and foreclosure. You need to demonstrate to a lender that your credit issues are behind you, or even when you hit your 3 year mark you could still not be approved. I am not telling this to discourage you, only to give you a better understanding on what an underwriter is looking for. Good luck!

You will have to wait until 3 years from the date of the sheriff's sale. If you were to do a conventional loan this waiting period will be longer.

Sorry, no. You just caused one lender to suffer a loss. Pretty logical that no new lender will want to take a chance on you today. The good news is that while you can't get a new loan today - that doesn't last forever. If you rebuild credit, and prove yourself worthy again, lenders WILL consider you again three-years after the Sheriff Sale date. www.JoeMetzler.com

Many lenders will go with the longest of the two seasoning dates. Seems you, like any filed BK during foreclosure, and lenders will use the longer of the two dates. Once the deed is transferred you can start counting 36 months from then. Perhaps you may want to look at ways to increasing your credit scores so when you do reapply for a mortgage you won't pay for the foreclosure with a higher rate. Best of Luck. Christina from Everlasting Credit Repair.