Best Answer: There is not a certain length of time you need to wait to repurchase another home. There are some lenders that will allow you to get another mortgage very shortly after a foreclosure. Some have even gone so far as to accept a person that has completed a bankruptcy, the can get a loan after being out of bankruptcy for one day.
Where this 7 year thing comes in is that your foreclosure or bankruptcy will stay on your credit report for 7-10 years. In the past most lenders would not take a chance on you because of your credit, but things have changed and now there are some willing to take a chance on you.
Now the thing you have to decide is if you want to pay the higher interest rate you will have to pay for you not protecting your credit and getting a negative on your report such as a foreclosure or bankruptcy.
It is worth it in my opinion and is better than paying rent to someone else where you derive no tax benefits and you own your own property with all the tax benefits.
There is another thing that you must remember also, all the interest and certain points and closing cost are tax deductable on your federal income tax. Check the itemized
deduction page of your federal return it will say all interest you have a form from your mortgage company for then all interest you do not have a form for a mortgage company, below that is another line for points and other fees you paid to secure your loan. (Please check with your tax preparer or CPA for any tax advice)
So with that being said I see no reason for you not to purchase a home again as long as you are able to maintain the monthly payments, property taxes and annual insurance policy that is required by the mortgage company.
You should check with a mortgage "Broker" that have programs for those individuals that have had a foreclosure or bankruptcy, tell them up front about your credit problems. There are some mortgage "Brokers" that specialize in individuals with poor or no credit. Make sure that you get one that specialize in these type loans, other wise you are wasting your time.
Once you have successfully made your mortgage payment for a complete year at the high rate you will have, you may refinance to a lower rate if you so desire. The key here is that you must have paid your mortgage on time without a 30 day late.
I hope this has been of some use to you, good luck.