I’m no expert about lending, loans, credit scores and credit repairs. But, I have been around conducting business for years.
The fact that you have foreclosured, been late on payments, short-sale or anything similar WILL effect your credit score. But does it mean the end of borrowing for you? Probably not.
Free markets change and adapt. It is most likely that in the coming years banks will see more and more applications from borrowers that have had some bad history on their credit report. Should this be a common issue banks will have to adapt. They will probably come with new programs that will attract such borrowers. They will probably even start competing with each other on this segment. We can only assume that such loan programs would not be as attractive as someone with no credit issues but one can only assume they would be available altogether.
Bad credit lending had been around before the current economic time even started. Which means bad credit borrowers will be able to access such programs that had been around.
The US (real estate) markets are so advanced there are always options: partner-up, private money, hard money, join a group, open an entity, to name a few.
If you are an investor, you will always find a solution how to borrow and advanced your real estate portfolio, and who knows what type of ideas/programs will pop up tomorrow that will be attractive to investors.
The good-old-fashioned buying in cash is still a valid option