If you’ve recently gone through foreclosure or are in the foreclosure process, it’s normal to wonder, “Can you buy a house after foreclosure?” Many homeowners assume they won’t qualify for another mortgage after a foreclosure, but that’s not the case. Even after losing a home to foreclosure, it is still possible to qualify for another mortgage in the future once certain requirements are met. 

In this article, we’ll break down how long after foreclosure you can get a home loan, what affects your eligibility, and what can help you speed up the process for buying another home after foreclosure. Contact Denbeaux Law today to speak to an attorney who can help you understand what options you have for purchasing a house after foreclosure. 

How Long After Foreclosure Can I Get a Mortgage?

After foreclosure, most lenders will require you to go through a waiting period before they will approve you for a new mortgage. This waiting period typically begins when the foreclosure is completed, as reflected on your credit report and in the final foreclosure documents. 

The waiting period to get home financing after foreclosure will vary depending on the type of loan you are applying for: 

In some cases, you may be able to get the waiting period reduced if you can prove extenuating circumstances that significantly reduced your income or increased your expenses, such as a divorce, medical emergency, or layoff. 

How long after foreclosure you can buy a house depends not only on the waiting period but also on your credit score. Even if the required waiting period has passed, you still need to be approved for a new mortgage. Your lender will look at your credit score to decide whether to approve the loan and what terms to offer.

That said, wait times only apply to conventional mortgages after foreclosure. There are other types of financing you could use to get a home that don’t require waiting periods. 

Second Chance Mortgages & Non-Qualified Loans

After foreclosure, some lenders offer second-chance mortgages. These loans are typically non-qualified mortgages, meaning they don’t meet the Consumer Financial Protection Bureau’s guidelines for qualified mortgages. Unlike a conventional loan after foreclosure, non-qualified loans don’t require waiting periods. So, if you need a mortgage before your waiting period is over, a non-qualified loan is a post-foreclosure mortgage option you can explore. 

While second-chance mortgages after foreclosure make it possible to get a mortgage sooner, they typically come with higher fees, higher interest rates, and larger down payments. On top of that, many second-chance mortgage lenders include predatory terms in their contracts, such as penalties for refinancing or paying the loan off early, which can make it difficult or impossible to move into more affordable financing later.

For most homeowners, waiting until they qualify for conventional financing after foreclosure is the safer and more affordable option. And, depending on your situation, there may be opportunities for a lawyer to help you decrease the waiting period so you can buy a home after foreclosure sooner.

How An Attorney Can Help You Get A Mortgage Sooner

In some situations, there may be opportunities to shorten the waiting period to get a mortgage loan after foreclosure, which an experienced foreclosure attorney can help you with. 

One common issue is the incorrect reporting of foreclosure dates. Servicers sometimes report the wrong completion date to the credit bureaus, which can push your eligibility timeline for a home loan after foreclosure back by months or even years. An attorney can review your records and challenge errors that affect when the waiting period should begin. 

In reviewing the foreclosure case, the attorney can also determine whether it was handled properly. If it was not handled correctly or involved legal errors, it could be considered wrongful foreclosure, and the case can be disputed.

An attorney can also help determine whether you experienced any qualifying hardships that may allow you to reduce waiting periods. And if you need a loan now and cannot wait, an attorney can review a non-qualified mortgage offer, negotiate better terms, and make sure you are aware of any predatory lending practices that are being hidden in your contract. 

Schedule A Free Consultation With Denbeaux Law Today

Navigating the process of purchasing a home after foreclosure can be stressful and confusing. At Denbeaux Law, our attorneys specialize in helping New Jersey homeowners throughout the foreclosure process, including buying a home after foreclosure. 


Every situation is different, and it’s important to know what legal options apply to you specifically. Contact Denbeaux Law today to schedule a free consultation with one of our foreclosure attorneys who can help you get clarity on how to buy a home after foreclosure.

Attorney

Joshua Denbeaux is a Partner at Denbeaux & Denbeaux, concentrating his practice on financial consumer rights issues and foreclosure defense. He has substantial experience in legal matters related to foreclosure, loan modification, debt collection, and the prosecution of cases related to predatory lending. Mr. Denbeaux received his law degree in 1994 from Seton Hall University after completing his undergraduate work at The College of Wooster. Mr. Denbeaux is licensed to practice in the United States District Courts for New Jersey.