Timeline for Financing Post Short Sale, Foreclosure and Bankruptcy

 

Short Sale/DL

Foreclosure

Chapter 7 BK

Chapter 13 BK

Freddie Mac

4 years from completion date for the short sale or Deed in Lieu; 2 years from completion for short sale; 2 years for Deed in Lieu with extenuating circumstance

7 years from completion date 4-7 years max 10% down; 3-7 years from completion date with extenuating circumstance; 90% Max LTV/CLTV or program Max, whichever is lower; primary purchase only

4 years from discharge or dismissal date; 2 years from discharge or dismissal date with extenuating circumstance

2 years from discharge date; 2 years from dismissal date with extenuating circumstance

Fannie Mae

4 years standard; 2 years allowed with extenuating circumstances

7 years from completion date; 3-7 years from completion date with extenuating circumstance; 90% Max LTV/CLTV or program Max, whichever is lower; primary purchase only

4 years from discharge or dismissal date; 2 years from discharge or dismissal date with extenuating circumstances; 5 years if more than 1 filing in past 7 years; 3 years if more than 1 filing in past 7 years with extenuating circumstances

2 years from discharge date; 4 years from dismissal date; 2 years from dismissal with extenuating circumstances; 5 years if more than 1 filing in past 7 years; 3 years if more than 1 filing in past 7 years with extenuating circumstances

FHA

3 years from completion date if in default at time of short sale; No wait after date of completion if borrow made the mortgage and installment payments on time for the 12 month period preceding the short sale; 1 year for Back-to-Work program

3 years from completion date; 1 year for Back-to-Work program

2 years from discharge date; 1 year if caused by extenuating circumstances and has been able to document the responsible handling of their financial affairs; 1 year for Back-to-Work program

1 year of the payout must elapse and payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage; 1 year for Back-to-Work program

VA

Follow VA with AUS approval

3 years from completion date with AUS approval

2 years from discharge date

1 year of payout must elapse & payment performance must be satisfactory; buyer must receive permission from court to enter into a mortgage

USDA

3 years from competition date

3 years from completion date

3 years from discharge date

JUMBO

REFER TO SPECIFIC JUMBO GUIDELINES

 

Time periods specified above are subject to change at any time.

  • Newland & Newland LLP, Attorneys, Arlington Heights, IL
  • Lawyer.com