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Is it possible to refinance a home loan after foreclosure?

Foreclosure affects your credit score badly. It shows up on your credit report for around 7 years. If you have past records of foreclosure, then you are treated as a risky borrower by the lenders as you have high chance of default. In such situation, you have to wait for several years to refinance your mortgage loan. The length of the waiting period depends upon the type of the loan you want to refinance.

FHA loans

FHA loans are guaranteed by the Federal Housing Administration (FHA). FHA is responsible for insuring nearly one-third of the mortgages in the country. In the event of default, the FHA comes forward for rescuing the lenders. Anyways, you have to wait for at least 3 years for FHA loan refinance after foreclosure,

Conventional loans

These loans are owned by the government-backed institutions such as Freddie Mac and Fannie Mae. For conventional loan refinancing after foreclosure, you have to wait for 7 years.
There may be some relaxations in some extenuating situations such as serious illness, death of a wage earner etc which may lead to foreclosure. In such situations, lenders may offer some relaxations in the waiting period.

Hi there… I need help! We had a vacation property which had to let go into foreclosure. This was around 2 years ago. Now, I own a primary residence in another state whose value is around $1.1M and I have a mortgage on it of $279K with 4.75% fixed rate. I have a good income and never missed any mortgage payments. The foreclosure 2 years back did not affect my score. But I am still not able to [url=http://www.mortgagefit.com/refinance.html]refinance[/url] my primary home mortgage. What are my chances? Do I have to wait one more year before trying again?

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

No, you cannot [url=http://www.mortgagefit.com/refinance.html]refinance[/url] a home loan immediately after foreclosure. Refinancing is taking out a new loan in order to replace the existing one. If you want to qualify for refinance after foreclosure, you will have to wait for at least 3 years or more than that. You need to know that lenders will not agree for mortgage refinancing before that time.

Like | Dislike | Share | Posted: Thu, 03/07/2013 - 04:18

kate.kelley12's picture
kate.kelley12 | Joined: March 21, 2012 03:47 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

The above post has been made by Kate Kelley.

Like | Dislike | Share | Posted: Thu, 03/07/2013 - 04:19

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Foreclosure must have affected your score negatively. The 3 year seasoning period is true in case of an FHA loan. For a conventional loan [url=http://www.mortgagefit.com/refinance.html]refinance[/url], the seasoning period is 7 years.

Like | Dislike | Share | Posted: Tue, 02/12/2013 - 23:19

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johndzialo1 | Joined: August 21, 2012 02:18 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I agree with the posts above that one cannot refinance a home loan after a foreclosure. But if you wait for at least a period of three year then you may do so.

Like | Dislike | Share | Posted: Fri, 03/08/2013 - 22:12 | Post subject:

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reversemortgagesss1 | Joined: April 15, 2013 06:41 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

The Mortgage rules are changing. Consult with a mortgage lender you trust.He will help you in analyzing the options that best suits for you situation.

Like | Dislike | Share | Posted: Thu, 06/06/2013 - 03:46 | Post subject:

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Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have excellent income and have repaired credit by 100 points in a short time how likely am I to get a mortgage?

Like | Dislike | Share | Posted: Fri, 05/16/2014 - 20:56 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have excellent income and have repaired credit by 100 points in a short time how likely am I to get a mortgage?

Like | Dislike | Share | Posted: Fri, 05/16/2014 - 20:55 | Post subject:

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sanderspatricia291 | Joined: December 10, 2012 03:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

There's no question of a refinance after a foreclosure. It's more like you need to take out a new mortgage. However, 3 years is the minimum time required before you can take out one. Make your bill payments on time and try rebuilding your credit in the meanwhile.

Like | Dislike | Share | Posted: Fri, 02/08/2013 - 04:16

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Stella,

Refinance is taking out a new loan and replacing the old one. Thus, the criteria to get a mortgage and refinance, after foreclosure remains the same. In order to [url=http://www.mortgagefit.com/Mortgage-Basics/do-i-qualify-for-a-mortgage.h... for a mortgage[/url] refinance after foreclosure, you will have to wait for 3 years or more. Before that, lenders normally don’t agree to give a loan or refinance.

Thanks,

Jerry

Like | Dislike | Share | Posted: Fri, 02/08/2013 - 01:30

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opondo_moses1 | Joined: October 22, 2012 12:16 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Jessica,

Great post.Answers most questions on how long it takes to get a mortgage after going through a foreclosure.
It is also important to note that during the 3 year waiting period one needs to work on improving their credit for instance by paying their debts on time, taking a credit card and paying on time etc.

Like | Dislike | Share | Posted: Wed, 03/06/2013 - 05:05 | Post subject:

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