While homeowners who default on a mortgage due to economic hardship, such as a job loss or divorce, normally must wait two to five years before buying a home again, walkaways may face double that time.

Walkaway, meaning those who voluntarily walk away from their home loan. For example, say you owe $600,000 when you house is only worth $300k, and you walk away from the debt and let the bank foreclose on you. It can take you up to seven to eight years to be in a position to buy a home again.

Credit scores are just one component of a complete credit decision. Future underwriters will scrutinize your records very closely and if they see no precipitating factors leading to the default, for example, no job loss, no health issues, then the repaired credit score won’t overshadow the black mark of a walkaway.

That is not to say you can’t get a loan. YOu might be able to put might have to pay a premium for it as well. Or be charger a higher interest rate to qualify.