Courtesy of Mark Dalbon from Ross Mortgage
Conventional financing - The waiting period requirement after foreclosure has been extended from 5 years to 7 years. Additionally, clarification has been made to the current guidelines for borrowers who have had prior short sales, pre-foreclosure sales or have given deed in lieu of foreclosure. The waiting period requirements for those borrowers are as follow:
o 2 years with max LTV of 80%
o 4 years with max LTV of 90%
o 7 years for maximum financing
FHA - FHA has 3 year waiting period. The 3 year waiting period begins once the prior mortgage debt has been satisfied. If there was a deficiency owed on the foreclosure (generally due to the bank being unable to re-sell the property for the full amount owed), the clock begins ticking once that debt has been satisfied either through full repayment by the borrower or through discharge in a Bankruptcy. Please remember that HUD does consider a deed in lieu of foreclosure transaction to be a foreclosure. HUD also considers short sales & pre-foreclosure sales to be foreclosures if the borrower was at all delinquent at the time of the sale and/or if the payment to the lender at the time of sale was not accepted as payment in full.
Mark DalBon
Senior Loan Officer
Ross Mortgage Company
(978) 847-0514 Direct Line
(877) 811-5508 Toll Free
(978) 847-0039 Fax
AnnMarie Belair
Sterling Realty Belair
978 422 6908
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