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.
FANNIE MAE RULES:
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.