I have a friend whose house was foreclosed upon after a messy divorce. She is lamenting that she may never be able to be a homeowner again if she ever gets to that place in her life again. Anyone know of the likelihood of her qualifying for a mortgage again down the line?

I'm sure she'll be able to get one - it'll just be a lot more difficult.

There are plenty of lenders who dip into the "bad credit mortgage" market, where they lend at high interest on the pretence of "high risk".

In which case, it would probably be recommended that she look to rebuild her credit rating and develop a proven history of repaying debt.

I knew that a lot of people are able to get "high risk" car loans but I didn't know that mortgages run the same way. I'll pass that on to her- I think she's working hard to clean up her credit now so that will be encouraging to her.

It will not be a problem at all. The problem is that she will most likely end up with less of a house than she could normally afford due to the high interest rate. Of course after a year or two of that she could always refinance.