How long after foreclosure does it take before you can buy again? Jay Brinkmann, chief economist for the Mortgage Bankers Association says that “It could be well over seven or eight years before walkaways are able to obtain a mortgage to buy a home again.”

For those that have either had a short sale, the time frame to qualify to buy another home can be considerably less. We encourage those home owners that are facing a foreclosure, to weigh all of their options, especially the short sale alternative.

Escrow or closing deadline is May 1, 2010.

Another incentive offered is to only require 3% down on home purchases through HomePath Mortgage. Fannie Mae finally realized that the best way to help the real estate market recover is to get the foreclosed properties off the market. Fannie Mae is hoping that many home buyers taking advantage of the federal tax credit available now will purchase a Fannie Mae home.

Buyers, especially first time home buyers, can score a home run by getting a great deal, receiving the first time home buyer credit of $8000 and also getting additional help from Fannie Mae on the purchase of a Fannie Mae property.

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.

The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.

In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.