This can't be true! If you foreclose on your house, you can get another home loan in 2 years?!?

I went to lunch with my friend today, and she was trying to tell me that if she and her partner foreclose on their home they currently have, they'll be able to buy another home in 2 years and get a loan from a bank for it?! I just don't believe it. IS SHE RIGHT?! She was saying she'd have to get an FHA Loan though (not sure if that makes a difference). Wouldn't their credit just be horrible?! Any insight would be great.