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As Realtors we are often ask this question. If I have a bankruptcy or a short sale how long do I have to wait until I can purchase a new home? Here is some Info on this subject Courtesy of Jim Freda at Nova Home Loans.

By
Real Estate Agent with Re/max Preferred Choice

If you are seeking a CONVENTIONAL loan, here are the Eligibility periods:

Chapter 7 Bankruptcy - 4 years from discharge date. Chapter 13 Bankruptcy - 2 years from discharge date.

Foreclosure - 4 years from completion date

Deed - in - Lieu of foreclosure/ Short Sale

These transaction types are completed as alternatives to foreclosures. A deed - in    lieu of a foreclosure/ Short Sale is a transaction in which the deed to the real property is transferred back to the servicer. A pre-foreclosure sale or Short Sale is the sale of a property in lieu of a foreclosure resulting in a payoff of less than the total amount owed, which was pre-approved by the servicer. A 2 year waiting period is permitted if extenuating circumstances can be documented, with maximum LTV ratios of lessor of 90% or the maximum LTV ratios for the transaction per the Eligibility Matrix.

 The Maximum LTV ratios permitted are the lesser of the LTV ratios in this table or the maximum LTV ratios for the transaction per the Eligibility Matrix

 The Following waiting periods requirements apply:

Two Years------------------------------------------------ 80% maximum LTV ratios1

Four years------------------------------------------------ 90% maximum LTV ratios1

Seven years---------------------------------------------- LTV ratios per the Eligibility Matrix

 If you are seeking an FHA Loan, here are the eligibility periods;

Chapter 7 Bankruptcy - 2 years from discharge date

Chapter 13 Bankruptcy - 1 year of the payout must elapse & payment performance must be satisfactory. Buyer must receive permission from the court to enter into a mortgage.

Foreclosure - 3 years form completion date.

Short Sale - 1 year for the completion date if the borrower was current at the time of the short sale and all installment payments for a 12 month period of 3 years from completion date if in default at the time of short sale.

If you are seeking a VA loan, here are the eligibility periods:

Chapter 7 Bankruptcy - 2 years from discharge date

Chapter 13 Bankruptcy - 1 year of the payout elapse & payment performance must be satisfactory.  Buyer must receive permission from the court to enter into a mortgage.

Short Sale - No specific information on this yet, assume foreclosure rule of 2 years.

 If you are seeking a USDA loan, here are the eligibility periods:

Rural Bankruptcy Ch. 7 or 13 - 3 years from discharge date

Foreclosure - 3 years from completion date

Short Sale - No specific information on this yet, please assume foreclosure rule of 3 years.

 ***Please remember, loan guidelines are subject to change without notice*** Please know that there is a light at the end of the tunnel. You can be a homeowner in the near future. If you have any questions regarding this topic or any other real estate need please visit www.azpremierproperties.net  for all of your real estate needs. We are here to help.

 

Show All Comments Sort:
Mike Morrison
Will & Will Real Estate Brokers, The Woodlands, Texas - Houston, TX

What about hard money? Starting to see HM lenders look at SFR Loans.

Jun 22, 2011 12:45 PM
Kwee Huset
Kwee Huset Realty - Venice, FL
Venice Florida Homes For Sale

Hi Andy, Thanks for sharing & Congratulations on your 1st post. Welcome to activerain,  visit  http://activerain.com/blogsview/1999491/activerain-university-training-calendar  you can join up to 5 groups for your post. Members at AR are very friendly and helpful; I learned alot about blogging and SEO.  Wish you good luck.

Jun 22, 2011 02:45 PM
A. Kothe
Re/max Preferred Choice - Goodyear, AZ
The Kothe Team - SFR, CDPE, CIAS

Thank you for welcoming me to Active Rain.

Jul 07, 2011 07:04 AM