Some experts are saying that credit scores should be less affected by foreclosures or short sales than they would have 3 years ago. They are suggesting that FICO adjust its scoring system to our economic times and because of the bad lending over the last few years. 
The reason being is that the majority of people that found themselves going through foreclosure may not typically have the same spending/charging habits as those that may have found themselves in this situation in the past.
There are several companies out there that are now lending to those with "bad credit". They are looking past the ding (foreclosure) and more into the situation. This will help those that are able to pay bills and have decent jobs but got caught in a bad situation. One company is offering a program that shows how to lend to the "newly credit impaired".
Obviously there are pros and cons to this but I actually have a client who is afraid they will never be able to buy a house again. They are getting older and of course the future scares them. They were victims of Katrina and now live in Nashville. I KNOW they are hard workers and pay their bills but due to a situation out of their control they have lost their home....and credit.
Stephen Strickhausen
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