I did not even realize that the wait times have been shortened for buying again after a foreclosure or short sale. Here are some things to do to get back in the housing game as quickly as possible!
1. Know your options: You no longer have to wait seven years after a bankruptcy or foreclosure to buy another home, Fannie Mae has shortened its waiting periods to two years after a pre-foreclosure sale – a short sale or deed in lieu of foreclosure – and to three years after a foreclosure. That's down from the standard waiting periods of four and seven years, respectively.
2. Change your bad money habits: Focus on paying down debt, creating a solid savings strategy and avoiding new splurge purchases. Saving for a downpayment and closing costs is one of the biggest hurdles that homebuyers face.
3. Repair your credit: The FHA's minimum credit score requirement for maximum financing is 580. Some lenders offer loans at that minimum, Carlisle says, but other mortgage lenders require a FICO score of 640 or higher.
4. Beware of predatory lenders: If you encounter lenders that try to seduce you with "special" zero-down home loans or people who recommend rosy rent-to-own or land contract agreements, run the other way.
5. Seek help from the pros: Not only can housing counselors help you address credit issues and set up a savings plan, they can connect you with state, local and private resources that can ease your path to homeownership, Brown says.
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