Fannie Mae just made an exciting announcement. Sellers who elect to sell on a short sale over letting the property go through to final foreclosure, are eligible to buy a new home after two years. Although there are no exceptions due to extenuating circumstances, this new ruling means there is finally a logical reason to do a short sale now.
The time period is two years with extenuating circumstances for a deed-in-lieu-of foreclosure. Otherwise, it is four years. Extentuating circumstances means a hardship, documented and proven.
The time period for a foreclosure is three years with extenuating circumstances and five years without.
Two years after a short sale, a seller can buy a new home! This news made my day!
Here is the link (updated 6/27):
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf
Photo: Big Stock Photo
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