How long will it take to reestablish credit history after a bankruptcy, short sale or foreclosure?

By
Real Estate Agent with Big International Realty

With this Announcement, Fannie Mae is introducing several new and updated policies
that pertain to the following topics:   
 

·  Bankruptcy and foreclosure policies: updates to manual underwriting requirements

for borrowers with prior bankruptcy or foreclosure actions in their credit history,
including deeds-in-lieu of foreclosure and preforeclosure sales,

·  Conversion of principal residence to second home or investment property: new

requirements for borrowers who are purchasing a new principal residence, and intend
to convert their existing principal residence to a second home or investment property,
and

·  Representation and warranty requirements: revised property value representation

and warranty requirements for mortgage loans that are closed more than 6 months up
to 12 months prior to the date the loan is sold to Fannie Mae.

With this Announcement 08-16, Fannie Mae is updating the requirements regarding the
time period that must elapse before borrowers can demonstrate they have reestablished
their credit history after the occurrence of a bankruptcy or foreclosure

For more dtails please click here

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