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VinRan: 2 years ago

Can I buy a house during a foreclosure?

Have until August to stay in my house and I am looking for a new place to live

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Answer 1

dross1958: 2 years ago

Technically, if you pay all cash you can buy another house while you are currently in the foreclosure process.

You will not get a loan or mortgage from anyone since your current foreclosure shows up on your credit report and drops your score at least 200 points.

Additionally if you are in a recourse state, when the other company finally forecloses on your home, they will get a deficiency judgement against you.

That means they will have from 7 to 20 years to come after you to collect the difference between what you owed them in the original mortgage and what they resold your old house for.

They can seize your bank accounts, seize any other properties, etc. So buying a new house until you get your things properly straightened out and figure what type of state you live in is not smart

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VinRan: 2 years ago

@ Dross1958: If I do a short sale, can I buy a house?

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dross1958: 2 years ago

I answered that in your other question. It won't help you and you will still be on the hook for the difference.

You don't want to buy anything, until you figure out if you will have to declare bankruptcy to clear the judgements/debts or not. It depends on what state you live in

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Answer 2

brandenhouston: 2 years ago

Yes, you can still buy a house while you are under foreclosure but mortgage companies are less likely to give you a loan while you are under foreclosure.

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