Second Chance for Homeowner's after a foreclosure or short sale. Yes there is hope but it will take some time. The amount of time before another purchase can be made will be determined by the type of financing, the amount of your down payment and your CREDIT SCORE!
A foreclosure and sometimes a short sale can negatively impact your credit score by as much as 200 points. It is going to take time to recover. Remember there is no quick fix. The best way to increase your credit score is by maintaining a perfect payment history and managing your account balances.
FHA will allow for a new mortgage under the Back to Work Program 12 months after a short sale or foreclosure. There are a set of specific requirements that must be met in addition to the normal FHA underwriting guidelines. Borrowers should discuss their specific situation with a licensed mortgage originator.
It should also be noted that not all lenders are offering this program at this time.