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Can I Get a Fort Lauderdale Mortgage After Foreclosure or Bankruptcy?

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Can I get a Fort Lauderdale mortgage after foreclosure or bankruptcy? This is a very common question I receive from Home Buyers and Sellers every week. It's certainly a sign of the times in Florida, with about half of mortgage holders being underwater on their homes.

Foreclosure and Bankruptcy

It's a very difficult decision for those that have a choice about keeping their home that's worth half of what they paid and may take years to regain it's value. Many realize that they could be living in a house with equal amenities for half the price they paid and a much lower monthly payment. Those that aren't fortunate enough to have the staying power will not have a choice and unfortunately, will face foreclosure and perhaps bankruptcy as well.

There are a lot of misconceptions about the impact of a foreclosure, a short-sale, or bankruptcy when it comes to being able to get another Fort Lauderdale mortgage. Those misconceptions range from being able to get another Fort Lauderdale mortgage right away, to never being able to get another mortgage in your lifetime.

The good news is a potential Home Buyer can get a Fort Lauderdale mortgage again after a foreclosure or bankruptcy. Although the current mortgage guidelines differ for FHA Financing and traditional Fannie Mae Financing, both will offer qualified Home Buyers a home loan again.

A FHA Fort Lauderdale mortgage requires a borrower to be at least three years past a foreclosure date, while a bankruptcy requires two years from the discharge date. There are some short-sale exceptions being made that require extenuating circumstances to be documented and the payments on the mortgage must have been made on time for the twelve months prior to the short-sale. In these cases, it may be posssible to obtain another Fort Lauderdale mortgage right away.

A Fannie Mae Fort Lauderdale mortgage requires a four year waiting period for a foreclosure or bankruptcy. Fannie Mae's current version of it's Automating Underwriting System (Desktop Originator) can grant some two year extenuating circumstances relief for short-sale transactions meeting the FHA criteria above.

Future Beyond Foreclosure

If you've been an unfortunate victim of the current financial and housing crisis, that included a foreclosure, short-sale or bankruptcy, it will be possible to obtain a Fort Lauderdale mortgage again in the future. Your ability to re-establish and maintain your credit will be the key to answering, "Can I get a Fort Lauderdale mortgage after a foreclosure or bankruptcy?"