Any mortgage brokers out there?

I am sorry to say this, but your son is probably not telling you the truth. There is no bank in the world that will start foreclosure after 1 late payment. At 120, they may initiate foreclosure proceedings, but they would have been calling him and hounding him mercilessly before hand. This isn't a case of a girlfriend "spacing" a bill. This is the sign of a financial meltdown that he doesn't want to tell you about (I am willing to bet he is embarrassed, or is trying to get you to help him financially).

As far as the home purchase, he can pretty much forget it. With the market like it is right now (credit is tightening), nobody will likely touch him. Also, I seriously doubt the seller will wait for him to fix it.

His best bet is to come clean on the situation, and walk from the deal NOW. Waiting will hurt the sellers from getting more offers, and will give them a legitimate reason to keep the earnest money deposit.

Unfortunately, the fix is not a quick one. I'm sure the whole picture is not evident to you. The mortgage companies don't just start foreclosure proceedings because of 1 month late payment. It takes at least 6. I'm sure he hasn't shared all the details with you, which is not unusual. If he can make up the payments that are past due, I would try that first. If not, then maybe see if he can refinance and wrap the equity back in to cover those payments. If not, have he ask if he can provide deed in lieu of foreclosure. If not, he doesn't have many other options. As for his current offer, if he can not qualify because of his credit history, he is better off to tell them now in hopes of getting in earnest money back. Unfortunately, when you have tarnished credit, it takes awhile to clear it all up and have a good credit score again. He may have to rent for a few years.

Unless he managed to get a major chunk of cash, he's probably out of luck right now.

With that flag that foreclosure proceedings started on his credit report, he won't qualify for hardly anything right now.

Maybe 60% loan-to-value (meaning he puts 40% of the purchase price down), and a 12% rate.

There is nothing he can do but wait 2 years, rent in the meanwhile, and take an FHA loan after 2 years from the sale date of his prior home.

Anything else he tries to do, he'll end up with brutally high interest rates, and just end up in more trouble.

shot me an email depeinding on what state you live in i maybe able to help your son. i'm an loan officer for a mortgage company