Sunday, May 5, 2013

Rebound

Waiting Periods Prospective buyers who’ve experienced a foreclosure or bankruptcy can 
expect the following waiting periods before they can seek loan approval. Fannie Mae and Freddie Mac Dept. of Veterans Affairs Federal Housing Administration Foreclosure Seven years, but the lender will make exceptions at three years if extenuating circumstances are met such as job loss or death of a wage earner. Generally, not less than two years with foreclosures and bankruptcies filed under straight liquidation and discharge provisions. If the foreclosure was on a VA loan, the buyer must have paid the VA for its loss before qualifying for a new VA loan. Three years, but the FHA may grant an exception if the foreclosure was a result of serious illness or death of a wage earner and the borrower has reestablished good credit. Chapter 7 or 11 Bankruptcy Four years (two years with extenuating circumstances). Under a Chapter 7, two years after the discharge with reestablished good credit or no incurred new credit obligations, Chapter 13 Bankruptcy Two years from discharge date; four years from dismissal date. After making 12 months of payments to a court-appointed trustee and the trustee or the bankruptcy judge approves new credit. One year current on required payments to be considered