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Recent changes/clarifications that have been made regarding borrowers with previous Foreclosures

By
Real Estate Agent with Real Estate Worcester County MA 9052279

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

www.markdalbon.com

(978) 847-0514 Direct Line

(877) 811-5508 Toll Free

(978) 847-0039 Fax

 

AnnMarie Belair

annmariebelair@comcast.net

Sterling Realty Belair

978 422 6908

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