Deragatory Waiting Periods for Conventional Loans Part Two! Just in case you missed part one here is a link for you (Deragatory Waiting Period Part One)
My good friend Robert Bob Gilbert asked What are Exenuanting Circumstances for a Foreclosure:
Well according to FANNIE MAE here is the answer:
Extenuating circumstances are nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.
If a borrower claims that derogatory information is the result of extenuating circumstances, the lender must substantiate the borrower’s claim. Examples of documentation that can be used to support extenuating circumstances include
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documents that confirm the event
such as a copy of a divorce decree, medical reports or bills, notice of job layoff, job severance papers, etc.; and
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documents that illustrate factors that contributed to the borrower’s inability to resolve the problems that resulted from the event
such as a copy of insurance papers or claim settlements, property listing agreements, lease agreements, tax returns (covering the periods prior to, during, and after a loss of employment), etc.
The lender must obtain a written explanation from the borrower explaining the relevance of the documentation. The written explanation must support the claims of extenuating circumstances, confirm the nature of the event that led to the bankruptcy or foreclosure-related action, and illustrate that the borrower had no reasonable options other than to default on his or her financial obligations. The written explanation may be in the form of a letter from the borrower, an email from the borrower, or some other form of written documentation provided by the borrower.
So Bob with that said great question and hope this answered your question.
Now on a side note I failed to mention SHORT SALES and of course this getst trickie too 4 years from the Short Sale date in which title was transferred to the new Lien Holder with a minimum Down Payment of 10%. and the alternative is 7 years form Short Sale date in which title was transferred to the new Lien Holder with a down payment less than 10%
If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at310.486.1002 (m) or homes@endrebarath.com or visit one of my websites at http://www.endrebarath.com. I am a Pet Friendly Realtor and I contribute a portion of my commission to local animal rescue organizations.
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