Can you get a real estate loan (Gov / Trad) to buy a home more accessible when they are now in foreclosure

Job loss and damage caused to fall behind on mortgage payments. The Bank does not work with us and began the process of implementation mortgage after 30 days late. We can not afford our current home. We're trying to sell, but the sheriff sale has occurred, our time to sell is limited. We have located a different house that is 1 1 / 2 times cheaper and allow us to make much smaller house payments. We have some money to kill (the bank make partial payments, payment plans, etc.). but we have to finance the balance of this home different. Our credit is terrible now because of this, but we need a house for our family and children … There are loan programs (government or traditional) out there to help us enter the house. We tried to go Contract for deed, but the company wants to reduce home Foreclosure loose (the house that is trying to buy a property that needs repairs performed, but payment would be $ 100 less than they pay now)-Any guidance would be appreciated.

Talk to your bank and speak with a loan officer. I have used both with good results. Your realtor should be able to suggest one broker well, that's how I found mine. He put together a reasonable package (it was not cheap), and two years later refinanced a mortgage much more reasonable.