If my home is in foreclosure, can I buy another house?
The answer to that question is: You certainly can. The only impediment you may have is if you go to a federally insured lending institution and apply for a loan. If your home is foreclosed, then after the foreclosure you may be prevented – or you won’t be able to borrow money from a federally insured financial institution for a period of four years.
During the foreclosure action or even after the foreclosure actions, you can buy a home any time you want to. You can of course pay for it in cash, if you have the cash, and then move into the home and it’s protected as far as your homestead is concerned. You can see about owner financing to give some money down and have the owner carry the mortgage, or any other way that you can find to purchase a house.
So there’s no prohibition about buying a house. Some people find themselves with a mortgage that far exceeds the market value of the property. They have good credit and decide that they’re going to give up on that property. They have money, they have credit, and they go out and buy another house and finance that, and then short sell or let the original home that is underwater go. This is called “buy and dump,” and basically there is no problem in buying. And it’s something that does happen.
So yes, you can buy a house as long as you can figure out how to pay for it, either through cash or owner financing.
If you’d like to discuss this with me, give me a call at (727) 847-2288.