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Buying again after Short Sale, Foreclosure and Bankcruptcy.

June 11th, 2015 8:45 PM by Sam Kader

As rents rise and low mortgage rates and the economy gradually improves, those who lost their home in recent years will be able to re-enter the housing market. Prepare yourself first and when you are ready - here's the revised waiting period depending on your circumstances:

Conventional underwriting guidelines under FNMA.

  • Bankruptcy - Chapter 7 or 11. The waiting period is 4 years after the discharge or dismissal date.  With extenuating circumstances - the waiting period is 2 years.  
  • Bankruptcy - Chapter 13. The waiting period is 2 years from the discharge date or 4 years from the dismissal date. With extenuating circumstances - the waiting period is 2 years.
  • Short sale - The waiting period is 4 years after the short sale. With extenuating circumstances - the waiting period is 2 years.
  • Foreclosure - The waiting period is 7 years after Sheriff's sale date. With extenuating circumstances - the waiting period is 3 years.

Government underwriting guidelines under FHA:

  • Bankruptcy - Chapter 7. The waiting period is 2 years after the discharge or dismissal date. 
  • Bankruptcy - Chapter 13. The waiting period is 1 year from the discharge date.
  • Short sale - The waiting period is 3 years after the short sale and 1 year if can qualify for FHA back to work program.
  • Foreclosure - The waiting period is 3 years after Sheriff's sale date.

Government underwriting guidelines under VA:

  • Bankruptcy - Chapter 7. The waiting period is 2 years after the discharge or dismissal date. 
  • Bankruptcy - Chapter 13. The waiting period is 1 year from the discharge date.
  • Short sale - The waiting period is 2 years after the short sale date.
  • Foreclosure - The waiting period is 3 years after Sheriff's sale date.

According to Transunion 1.5 million "Credit Weakened" Americans were forced out of the housing market by the housing crash will flood the market in the next two years. They are more motivated because they have done it before. As long as their FICO score is 620, had no unpaid judgments or pending liens and had passed the waiting period above. Contact me for your Free Consultation. 

 

 


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