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Can I Get A Mortgage After A Foreclosure Or Short Sale?

By Patricia Payne

If you are trying to buy a home after a foreclosure or short sale you are probably concerned that you will not be able to get approved for a home loan. Though it may be difficult to get a mortgage after a foreclosure or short sale, it is not impossible

Getting a Mortgage after a Foreclosure

The housing market collapse hit all 50 states hard and resulted in many homes being lost to foreclosure. The number of foreclosures skyrocketed and the housing market has changed forever. The housing market changes are on many different levels. One way the housing market has been forced to change is how lenders perceive foreclosures on loan applications.

As you can imagine, there are some lenders that will not approve a mortgage for anyone whohad a foreclosure in their past. Some lenders may approve a mortgage after a specified period of time (1 year, 2 years, 5, years, 7 years, etc).

There are absolutely lenders that are approving mortgages for buyers who had a foreclosure in their past. These lenders will consider the overall circumstances behind the foreclosure and consider your overall application. You should be prepared to give a very detailed explanation about why the home went into foreclosure. Supporting documentation is also helpful


Speak to your loan officer upfront about your foreclosure and make sure he or she thinks you can still get approved before you waste valuable time.

Getting a Mortgage after a Short Sale

A short sale may not be as damaging to your credit report as a foreclosure. It is important to know that a short sale can be quite damaging, nonetheless. Some lenders have eased their guidelines for approving mortgages for people who had a short sale in their past. This is because many homeowners were forced to sell their homes below what they owed because of the crash in home values.

Keep in mind that the impact of a short sale on your mortgage application will also depend on how it was reported to the credit bureaus. You should get a copy of your credit report from all three credit bureaus and find out how the short sale was reported (if at all). The vast majority of mortgage applications ask about foreclosures and bankruptcy and not about short sales.

Speak to your loan officer about this upfront so you do not waste time.

Getting a Mortgage After a Short Sale or Foreclosure – The Bottom Line

The bottom line is you can be approved for a mortgage after a foreclosure or short sale. Find lenders that clearly state they offer mortgages to buyers with a past foreclosure or short sale. Know what is and what is not on your credit report and be upfront with the lender.

If you do your research and find the right lender you can be approved for a mortgage after a foreclosure or short sale.

This article is intended for general information. Always seek sound financial and legal advice before making any financial decision.

About the Author: Helpful mortgage information at

P. Payne works for

OHM Mortgage and Foreclosure Information Site

providing answers to all those questions people need to know.


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