When can 'Walkaway' Foreclosure Homeowners Buy Again?

What do you do if you owe $500k on a house that is worth $350k?  If you ever plan to buy another home again in the near future, you may want to stick it out.

There are 2 types of people going through foreclosure:  ones with economic hardships and ones that just want to walkaway because the property is upside down.  

Homeowners with foreclosures due to economic hardship, such as divorce, job loss, death in the family, or unexpected medical bills, may be able to fix their credit and purchase a new home within 3-5 years.  

But what about the person who didn't have an economic hardship and just walked away because they owed more than the house was worth?  Even if they fix their credit, these people probably will not be able to buy a home for 7 to 10 years.  

Credit scores are only a small part of the decision to lend to a homeowner.  Other factors come into play, and if an underwriter determines that you could have continued to stay in the house but walked away, chances are they will walk away from giving you a loan.