Can I get a mortage while in foreclosure?

Question:

My husband has been relocated to the South to work. We found a house that we would like to purchase, however, we have a house in Ohio that is currently in foreclosure. We also are closing on another house and will be able to get our home out of foreclosure and give us a down payment for the home in the South. Will we be able to get a loan, since we will have the foreclosure mark on our credit? We had never made any house payments late until now.

Answer:
No, you can't be approved while in foreclosure. It is now almost impossible to get a mortgage after being out of a foreclosure for the first 12 months, and after that you will still get stuck with a high rate. The best thing you can do for now, is get the home out, and pay it off or sell it. Then the best advice is to wait a while and put some distance between the foreclosure. It reflects on the credit, and any lender is going to see it. Before the fall of the sub-prime mortgage, you would have been able to find a broker or lender who would have put you in a mortgage at around 13% and up. Today it won't happen. Along with a foreclosure you are looking at very low fico scores once it reports, and that means that you just can't be approved. If you can buy a house with all cash, your good to go, but you really need at least a year to recover from the foreclosure, and see where your scores are by then. You can also look for a REPUTIBLE credit repair company that can try to help you with any other issues you might have on your credit, and DO NOT make any other late payments on other accounts as that will be another mark against you. Good Luck.

More power to you if you can pull it off. If you do, however, Please let me know how you did it.

Sounds like you already are in another mortgage. If not it's not impossible. You just have to check around.

Well most of these guys are correct in telling you that you might not be able to get another loan for another house.

There are at least 3 things against you

#1 The current foreclosure

#2 You are purchasing a house some place else that is obviously not your primary home

#3 You now want to purchase a house where your husband is being transferred.

What's the reason for you being in foreclosure, and apparently it was not because your husband lost his job if you and he are in the process of buying another house.

I can only surmise that you were taking the monthly mortgage to put a down payment on your new house. Now that the down payment has been made you can now catch up on the foreclosure.

You might look for an investor that will lend you the money for the purchase of your new home where your husband's new job is located. See if you can get a 2-3 year interest only loan from this person. The interest rate will not be cheap,but it will accomplish what you want to do. You may contact a mortgage broker to find out if he has any hard money lenders that will take a 1st mortgage. You might have to explain in a letter why you were in foreclosure. A good mortgage broker will be able to assist you with this letter. You foreclosure will have to be over before this can happen if you can find a hard money investor. Also you will have to come up with a large down payment.

I hope that this has been of some use to you, good luck.

"FIGHT ON"

If you "get the house out of foreclosure" there will not be a foreclosure on your credit report.

There can be significant damage from late payments. Late on a mortgage is considered even worse than late on other accounts.

You will end up having a problem getting a loan or you will be forced to pay above normal rates if you do get one.

Try to minimize the damage by getting things current ASAP.

If you use a large down payment some lenders will be less concerned about recent credit issues. They will expect you to pay more but they will fund the loan.

Can I get a mortage while in foreclosure?

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