< Back to Front Page Text size – +

Can I get another mortgage after a foreclosure?

Posted by Cheryl Costa September 3, 2008 10:04 AM

I had my home foreclosed last June.Will I be able to get another mortgage in the future?

Unfortunately, foreclosures are not an uncommon occurrence these days. For the one year period ending in May 2008, statewide foreclosures were up 140 percent. In some Massachusetts counties, the rate was up as much as 175 percent.

According to Rich Shapiro, from the Asset Mortgage Group, you will have to wait five years from the date of foreclosure to qualify for a Fannie Mae mortgage. The prohibition period for Federal Housing Administration (FHA) loans is a little more lenient -- just three years. Also, if the foreclosure was due to "documented extenuating circumstances beyond the control of the borrower" you could be considered by the FHA in less than three years. The extenuating circumstances would generally have to be something like a death or grave illness and you would need to fully document the situation for the underwriter's review.

As is the case with all mortgage loan agencies, good credit needs to be re-established. Consult with a mortgage professional about your particular circumstances -- you might find that you can get another loan sooner than you expected.

  • CommentComment
  • EmailEmail
« Back to Front Page
ABOUT MANAGING YOUR MONEY
Local finance professionals share insights and advice on issues such as budgeting, managing debt, and retirement planning.
see all globe blogs

About the contributors

Jill Boynton is co-founder of Cornerstone Financial Planning in Newington, N.H. Along with traditional financial planning services, Boynton provides analysis specifically for divorce.
Andrew Chan is the founder of Integrative Financial Advisors in Framingham. He provides comprehensive financial planning advice and investment management services. He has been an adviser for over 12 years and works with clients to integrate all aspects of their finances including investments, retirement, education funding, and tax planning.
Cheryl Costa is a managing director at AFW Wealth Advisors, which has offices in Natick and Purchase, N.Y. She advises clients on investing, education funding, and estate planning. She holds a master’s in business administration from Boston University.
Jamie Downey has been an accountant for more than 14 years. He's a partner at Downey & Co. in Braintree. Prior to joining the firm, he served as a manager in the audit department of accounting firm KPMG.

E-mail your question

Name:
E-mail:
Your question/comment:
archives

Related Links