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Without extenuating circumstances, waits can extend to four years after bankruptcy and seven years after foreclosure.
That reluctance, however, eases after foreclosure, when lenders find themselves holding properties they need to unload, Ms. Hanratty said.
When Freddie sells properties, either before or after foreclosure, it generates losses of 39 percent, on average.
"Don't be too tough on yourself if you must evict someone from a property after foreclosure," she continues.
Owners of traditional mortgages often are liable for the difference between the value of their house after foreclosure and their original loan.
A "In New York a lender can sue for deficiency liability after foreclosure," said Steven Einig, the Manhattan lawyer who answered the original question.
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Countrywide Financial, the nation's largest home lender, sued to recover losses after foreclosures.
That was the largest year-over-year gain since January 2006, and the association attributed the gains in part to a drop in homes sold after foreclosures.
After foreclosures, borrowers typically must wait at least five years before a bank is willing to grant them mortgages, he said.
Then Mr. Nashashibi drove to a few brick bungalows in Chicago Lawn that his group had bought for modest sums after foreclosures, renovating one as a "green" house with city support.
Fannie Mae and Freddie Mac still have a seven-year waiting period after foreclosures.
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