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The Mortgage Mashup Blog
|Posted on 22 February, 2016 at 11:15|
Boomerang Buyers need to know ( a buyer coming back into the purchase market after a short sale , foreclosure, deed in lieu or bankruptcy).
What is my waiting period to purchase a home having gone through the above ?
If you are doing an FHA loan:
Deed in lieu , short sale , foreclosure is 3 years .
Ch. 7 Bankruptcy is 3 years. However if you have a foreclosure included in the BK , then it goes off the date of the last item. For example if you file for bankruptcy and include a mortgage that is currently in foreclosure. The bankruptcy could be discharged and 9 months later the foreclosure can be completed. In that case the waiting period would be three years from the date of the foreclosure NOT the discharge of the bankruptcy.
The federal back to work program allows for applying for financing after 12 months with special circumstances and criteria. Message me for details .
Conventional loan can be tricky :
Short sale , deed in lieu and bankruptcy waiting period is 4 years.
A foreclosure alone is a 7 year waiting period .
If a foreclosure is INCLUDED in a Bk, then regardless of when the foreclosure is completed , you go off the discharge of the bankruptcy . However , suppose you had a property go into foreclosure , the foreclosure was completed (auction sale and title is out of your name ) THEN you file for Bk and include the discharged debt in your BK , your wait period is now 7 years . Easy way to remember this is if you are currently going through foreclosure while going through your bankruptcy then your waiting period will be 4 years from the date of the discharge of the bankruptcy.
Similar to FHA loans , conventional has a special circumstance waiting period that can be reduced down to 3 years .
Email or message me with any specifics at [email protected] or call my office 561. 745. 3344