Waiting period to buy again after foreclosure or short sale

By
Real Estate Agent with Century 21 (SUNNYVALE, CA) - (408) 893-2410

Waiting period to buy again after foreclosure or short sale

 
 

After a distressed sale, how long is the wait before you qualify for a new mortgage to help you get back to becoming a homeowner?

a) If you did a short sale for your last house, you normally have to wait for 4 years before you can qualify for a loan to purchase a house again.  However, with Extenuating Circumstance, you might be able to get a loan after 2 years.

b)    If you let your last house go to foreclosure with a valid hardship, then you still need to wait only 4 years to qualify for a conforming loan to get back to becoming a homeowner.
c) If you
let your last house go to foreclosures with no valid hardship (i.e. strategic foreclosure), then for both conforming and non conforming loan, you will need to wait 7 years

For an FHA loan, you only need to wait 3 years.

Posted by

Robert Lei

Real Estate Professional

Century 21 M&M and Associates

Sunnyvale, CA 94087

(408) 893-2410

Comments (2)

Rob Marken
Bend River Realty - Bend, OR
25+ years experience in Bend

Great information! I recently had a buyer who got stuck in a bit of a pickle due to some short saled properties and is having to wait a few more months until he can buy his dream home.  Thanks for sharing. 

Aug 25, 2014 05:46 AM
Tony Garcia
Homeside Financial, LLC - Charlotte, NC
Sr. Mortgage Loan Officer since 2001

c) If you let your last house go to foreclosures with no valid hardship (i.e. strategic foreclosure), then for both conforming and non conforming loan, you will need to wait 7 years

But if they had a foreclosure and a bankruptcy where the mortgage was included int he BK then your waiting period is 4 years from the discharge date of the BK. :)

Aug 26, 2014 12:01 PM