How Long Must I Wait to Buy A Home After Short Sale, Foreclosure or Bankruptcy
It seems as the majority of people I interact with have gone through some sort of financial crisis ranging from losing their home to a short sale, foreclosure or bankruptcy – all due to the changing economy and in many cases loss of income.
Many of these same people have re-establish themselves and are now back on “their feet” as the saying goes and want to purchase a home. The question asked by many:
How long before I can buy a house again?
Here is an overview of some of the guidelines for obtaining a mortgage after either a short sale, foreclosure or bankruptcy:
Conventional Loan Requirements:
|Chapter 7 Bankruptcy||4 years from discharge date|
|Chapter 13 Bankruptcy||7 years from discharge date or 4 years from dismissal date|
|Foreclosure||5 years from completion date|
|Short Sale||5 years from completion date|
|Deed in Lieu of Foreclosure||5 years from completion date|
FHA Loan Requirement
|Chapter 7 Bankruptcy||2 years from discharge date|
|Chapter 13 Bankruptcy||1 year of the payout elapse time, and all payments must be satisfactory –|
|Foreclosure||3 years from completion date|
No time restriction if the borrower was current on their mortgage payments
at the time of the short sale and all payments were made the previous 12 month
period and the proceeds from the short sale serve as payment in full, otherwise
3 years from completion date if in default at the time of the short sale
Filed under: Real Estate
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