Silver Lining: Getting a Home Loan after Foreclosure

Paddleboarder heading out to find the silver lining in the fog this morning.

How long must I wait to get a standard loan after bankruptcy, foreclosure or short sale?
The answers are better than you think, BUT layered with the fact that you MUST rebuild and re-establish credit to be eligible for decent pricing.  FICO score determines market rate (more in another post).

SAVE all your Bankruptcy, Foreclosure, Short Sale paperwork for 8 years. BK docket summary and discharge paperwork is valuable and necessary.


Chapter 13 BK :                       4 years from dismissal, 2 from discharge

Chapter 7 or 11 BK                 4 years

More than one BK filing        5 years if more than one in 7 years

Foreclosure                             7 years unless you can prove special circumstances(more coming) then 3 years          * see me for what constitutes special

Deed in Lieu of Foreclosure  2 years  20% down required
Or Short Sale                           4 years   10% down   7 years 5% down


Chapter 7 BK                          2 years from Discharge
Chapter 13 BK                        1 year of payout and payment performance and court approval
Foreclosure                            3 years from final
Short Sale                               no time restriction IF all mortgage payments and installments were on time past 12 months  prior to application date
Or 3 years if in default at date of short sale

What hurts your credit the most?

Prolonging the number of late payments combined with foreclosure.

Caroline Gerardo copyright 2012 all rights reserved

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