Find out how people are not precluded from buying real estate after doing strategic defaults, that is , to walk away from your underwater mortgage.
how-to-buy-real-estate-after-a-strategic-default
For FHA loans: a borrower can obtain financing 2 years from discharge or dismissal of a Chapter 7 bankruptcy, 3 years from completion of a foreclosure and 3 years from completion of a deed-in-lieu of foreclosure, short sale or pre-foreclosure.
For conventional loans: a borrower can obtain financing 4 years from discharge or dismissal of a Chapter 7 bankruptcy, 7 years from completion of a foreclosure, 4 years from completion of a deed-in-lieu of foreclosure, and 2 years after a short sale or pre-foreclosure (with 20% down payment).
Of course, these are traditional bank guidelines. Very few real estate investors I know use traditional banks to purchase fix and flip or buy and hold deals. If you’re looking for funding chances are you’ll need to find private or hard money lenders.
(Legal disclaimer: Deficiency laws vary from state to state; always consult an attorney before you consider a strategic default.)
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