What is the Timeframe for Borrowers to be Eligible for Financing after a Ventura County Short Sale, Deed-in-Lieu, Bankruptcy…
Conventional/ FNMA/ Freddie Mac Foreclosure
If a foreclosure occurs as the result of extenuating circumstances, such as a loss of job or illness, or if the foreclosure is due to financial negligence or mismanagement, at least seven years must have elapsed from the date of foreclosure to the date of closing of the new transaction.
Short Sale, Pre-Foreclosure and Deed-in-Lieu
A. If a short sale, pre-foreclosure or deed-in-lieu occurs as the result of extenuating circumstances, such as a loss of job or illness, at least two years must have elapsed from the date of closing on the short sale, pre-foreclosure or deed-in-lieu to the end date of closing of the new transaction with a maximum LTV of 90%.
B. If the short sale, pre-foreclosure or deed-in-lieu is due to financial negligence or mismanagement, at least two years must have elapsed from the date of closing on the short sale, pre-foreclosure or deed-in-lieu to the date of closing of the new transaction with a maximum LTV of 80%. At least four years must have passed for a maximum LTV of 90%, and at least seven years must have passed for no restrictions on LTV.
Chapter 7 or 13 Bankruptcy: 4 years since discharge/dismissal
Chapter 7 or 13 Bankruptcy with extenuating circumstances: 2 years since discharge/dismissal
Borrowers with multiple BK filings in last 7 years: 60 months since most recent discharge/ dismissal
Foreclosure, Short Sale and Bankruptcy
In general, financing can be done two years after the adverse credit hit for a loan amount up to $417,000 or seven years for loan amounts over $417,000. If the foreclosure was on a VA loan, the applicant may not have full entitlement available for the new loan.
Get my Free, Step By Step Loan Modification Guide by clicking here.
A borrower is not eligible for a new FHA-insured mortgage if s/he pursued a short sale agreement on his or her principal residence simply to
a. take advantage of declining market conditions, and
b. purchase at a reduced price a similar or superior property within a reasonable commuting distance.
Borrowers Current at the time of Short Sale
A borrower is considered eligible for a new FHA-insured mortgage if, from the date of loan application for the new mortgage;
a. all mortgage payments due on the prior mortgage were made within the month due for the 12 month period preceding the short sale, and
b. all installment debt payments for the same time period were also made within the month due.
Borrowers in Default at the time of Short Sale
A borrower in default on his or her mortgage at the time of the short sale (or pre-foreclosure sale) is not eligible for a new FHA-insured mortgage for three years from the date of the pre-foreclosure sale.
Note: A borrower who sold his or her property under FHA’s pre-foreclosure sale program is not eligible for a new FHA-insured mortgage from the date that FHA paid the claim associated with the pre-foreclosure sale.
A borrower is generally not eligible for a new FHA-insured mortgage when, during the previous three years;
a. his/her previous principal residence or other real property was foreclosed, or
b. he/she has given a deed-in-lieu of foreclosure.
Chapter 7 Bankruptcy
A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from obtaining an FHA-insured mortgage, if at least two years have elapsed since the date of the discharge of the bankruptcy. During this time, the borrower must;
a. have reestablished good credit, or
b. chosen not to incur new credit obligations.
An elapsed period of less than two years, but no less than 12 months may be acceptable for an FHA-insured mortgage, if the borrower;
a. can show that the bankruptcy was caused by extenuating circumstances beyond his/her control, and
b. has since exhibited a documented ability to manage his/her financial affairs in a responsible manner.
Note: The lender must document that the borrower’s current situation indicates that the events that led to the bankruptcy are not likely to recur.
Chapter 13 Bankruptcy
A Chapter 13 bankruptcy does not qualify a borrower from obtaining an FHA-insured mortgage, provided that the lender documents that;
a. one year of the payout period under the bankruptcy has elapsed, and
b. the borrower’s payment performance has been satisfactory and all required payments have been made on time.
The borrower must receive written permission from the court to enter into a mortgage transaction.
So, a short sale might actually help your credit score. E-mail us if you know of any other stories like this.
Thinking about a loan modification?Our Ventura County loan modification guide will show you how to reduce your mortgage payment, keep your home, and get back on your feet. Send me an e-mail at email@example.com to request a Free Copy.
Or, click here to request a copy.
Thinking about a short sale? I can help you short sale your property so you can move on with your life. Send me an e-mail at firstname.lastname@example.org. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 805-208-0823
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thanks for reading this,
Chris B Johnson, Realtor
Chris is a Real Estate Agent at Prudential California Realty.
Phone: 805-208-0823. email@example.com.
Certified HAFA Specialist, Certified Short Sale Specialist
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View My homes for sale at www.ChrisBJohnsonRealtor.com.
Chris B Johnson provides HAFA Loan Modification and short sales help, Short Sales in Moorpark, Short Sales in Thousand Oaks, Short Sales in Westlake Village, Short Sales in Newbury Park, Short Sales in Camarillo, Short Sales in Santa Rosa Valley, Short Sales in Somis, Short Sales in Lake Sherwood, and Short Sales in Simi Valley California. Moorpark Loan Modification Help, Thousand Oaks Loan Modification Help, Westlake Village Loan Modification Help , Newbury Park Loan Modification Help, Camarillo Loan Modification Help, Santa Rosa Valley Loan Modification Help, Somis Loan Modification Help, Lake Sherwood Loan Modification Help, and Simi Valley Loan Modification Help, Moorpark short sales , Thousand Oaks short sales, Westlake Village short sales, Newbury Park short sales , Camarillo short sales, Santa Rosa Valley short sales, Somis short sales, Lake Sherwood short sales, and Simi Valley short sales. Moorpark Short Sale Specialist , Realtor, Moorpark Short Sale Specialist , Realtor, Short Sale Specialist , Realtor, Ventura County CA Short Sales. Stop Foreclosure in Ventura County, Certified HAFA Specialist, Moorpark Short Sale Specialist, Thousand Oaks Short Sale Specialist, Westlake Village Short Sale Specialist , Newbury Park Short Sale Specialist, Camarillo Short Sale Specialist , Simi Valley Short Sale Specialist, Moorpark CA Short Sales, Thousand Oaks CA Short Sales, Westlake Village CA Short Sales, Newbury Park CA Short Sales, Camarillo CA Short Sales, Simi Valley CA Short Sales, Ventura County Foreclosure Help, Moorpark Foreclosure Help, Certified Home Affordable Foreclosure Alternative Specialist, HAFA, HAMP. CA. DRE 10501699.You can find Ventura County Short Sale Specialist, Realtor, at 587 W. Los Angeles Avenue, Moorpark, CA. 93021Chris also specializes in loan modification assistance and short sales in Ventura County California. Ventura County Loan Modification Help, Ventura County Short Sales.
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For Disclosure, and more information on Mortgage Assistance Relief Services, please see Code 16 of Federal Regulations (FTC), Part 322, or , http://www.ftc.gov/opa/2010/11/mars.shtm and always consult your CPA, Accountant, Financial Advisor and Attorney before you any financial or legal decisions.
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Chris B Johnson, Prudential California Realty, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Chris's personal views and do not reflect the views of Prudential California Realty.