Um....you MAY...if your credit is PERFECT after the forclosure...and your job history is good.....and....and ...and. Lenders currently are very picky, I don't see that changing in the near future.Excuse me, FHA loans are available after 3 years providing you meet the minimum credit requirements, which is a 580 or better credit score.
No FHA loans only require a 3.5% down payment and the interest rate is about 1-2 percentage points greater than the market rate.
The lender is only covered if, you were required to have private mortgage insurance (less than 20% down payment) or the loan was FHA insured.
Since we are talking about buyers who had little down on big recent mortgages, the great majority were still paying the insurance for the lender. Again, if they are not, that is the cost of doing business when you are handing out NINA loans, so cry me a river.
So again, you have no experience with what we are discussing, pre-crash purchases.Financial truths make you lol?
I purchased my home, after the housing market crash, because I got my house for cheap.
LOL, the amounts you are expecting people to have on hand to cover multiple months of below normal income to make payment on underwater properties is totally unrealistic in the economy of the last decade and a half.I'm not expecting any individual to know the economy or lending market enough to make predictions as such.
It's just that age old personal finance advice recommends saving cash in case things don't pan out.
That type of planning does not require the Oracle of Omaha, it's just sound personal finance.