Foreclosure / Short Sales / Bankruptcy

Because of the current economic and market conditions I am often asked by Realtors and potential homebuyers the updated waiting period requirements to obtain home financing after a bankruptcy, foreclosure or short sale.  Here is a helpful at-a-glance guide for the required wait times.

Conventional Loans:

• Chapter 7 BK – 4 year waiting period from the discharge/dismissal date.
• Chapter 13 BK – 2 year waiting period from the discharge date or 4 years from the dismissal date.
• Multiple Bankruptcies – If there are multiple bankruptcies within a 7 year period, the waiting period is 5 years from the most recent discharge/dismissal date.
• Foreclosure – 7 year waiting period from the completion date.
• Deed-In-Lieu/Pre-Foreclosure Sale (Short Sale) – Minimum 2 year waiting period.

FHA/VA Loans:

• Chapter 7 BK – 2 year waiting period from the discharge/dismissal date.
• Chapter 13 BK – 1 year of the payout must have elapsed and the borrower’s performance must have been paid as agreed.  Document that the borrower’s current situation is not likely to recur. The court must grant permission to the borrower to enter into a mortgage transaction.
• Foreclosure/Pre-Foreclosure/Short Sale – 3 year waiting period, however, there are possible exceptions granted for Short Sales.
• VA Loans ONLY – 2 year waiting period for Foreclosures.

FHA | VA | USDA | Private Money | Reverse Mortgage | Canadian | Jumbo Loans

Sean's Website | Sean's Blog | Click for Sean's Weekly Update | Click for Sean's Monthly Update

Posted via email from Sean La Rue's Posterous