This is FHA's stand: A borrower whose previous principal residence or other real property was foreclosed or has given a deed-in-lieu of foreclosure within the previous three years is generally not eligible for a new FHA-insured mortgage.
That would be fine if the mortgage companies had not sit on the paperwork for a year or two. Also when the mortgage company does not even look at your paperwork to modify your loan after losing your job.
I think once a person has re-established good credit since the foreclosure, he or she should be able to purchase another home. Providing them meet all other requirements.