One of the reasons that current homeowners may be so determined to keep a house out of foreclosure is the fear that, if they default on their mortgage, they will never be able to get a new home again, or at least not for a decade while the foreclosure is on their credit report. But this inability to qualify for a new loan after a foreclosure is simply a myth, and there are a number of ways that homeowners can obtain another mortgage. While it is not easy to do, foreclosure victims do not have to worry about being completely locked out of the banking system just for losing a home.

Immediately after a foreclosure, homeowners can qualify for a new loan to purchase a house, if they are willing to make the required down payment. Typically, they will have to go to a specialized foreclosure lender, hard money lender, or subprime lender that is still in business, and offer to put down at least 30-35 or more.

The fear of losing a home is often compounded by the fear of not being able to rent an apartment or qualify for a new mortgage ever again. But borrowers, even if they have to give up their plans to stop foreclosure on the current property, may find it easier than they at first thought possible to become homeowners again, with just a little extra work on their credit and a proper savings program. And even with very little work put into credit repair, most banks will be willing to make a reasonable loan after a period of five years to people who lost a home to foreclosure, as long as their use of credit has been positive since then.