Updated 2016 Fannie Mae Guidelines On Mortgage After Foreclosure

New 2016 Fannie Mae Guidelines On Mortgage After Foreclosure

There are new 2016 Fannie Mae Guidelines On Mortgage After Foreclosure in qualifying for a conventional loan. Fannie Mae and Freddie Mac treats Deed In Lieu Of Foreclosure and Foreclosure differently, unlike FHA Loans. All mortgage loan programs have their own mortgage lending guidelines in qualification requirements after foreclosure and deed in lieu of foreclosure for home buyers to qualify. FHA, for example, has a three year mandatory waiting period after the recorded date of foreclosure and deed in lieu of foreclosure. All waiting period after foreclosures and deed in lieu of foreclosures start from the date of the sheriff’s sale and/or the recorded date of the foreclosure and/or deed in lieu of foreclosure and not the date where the homeowner has surrendered the keys to their lender or signed the foreclosure and/or deed in lieu of foreclosure documents. There a tens of thousands, if not hundreds of thousands, of homeowners who went through the foreclosure and/or deed in lieu of foreclosure process many years ago, however, their waiting period did not start yet because the mortgage lender did not transfer the deed out of the homeowners name into their name. These folks did not even start the waiting period.

Fannie Mae and Freddie Mac have different waiting period requirements on foreclosure versus deed in lieu of foreclosure. 2016 Fannie Mae Guidelines On Mortgage After Foreclosure mandates a 7 year waiting period for a home buyer to qualify for a conventional loan. However, to qualify for a conventional loan after a deed in lieu of foreclosure and/or short sale is a four year waiting period after deed in lieu of foreclosure and a four year waiting period after a short sale. Both the waiting period after the foreclosure or deed in lieu of foreclosure start date is the date of the sheriff’s sale or the date the homeowner’s name was taken off the deed of the property.

2016 Fannie Mae Guidelines On Mortgage Part Of Bankruptcy

The great news for conventional mortgage loan borrowers is that if you had a mortgage, or mortgages part of bankruptcy . 2016 Fannie Mae Guidelines On Mortgage Part Of Bankruptcy states that if you had a mortgage, or mortgages ( if you were a real estate investor or had second and/or vacation homes as well ) as part of your Chapter 7 Bankruptcy , the waiting period to qualify for a conventional loan starts on the discharged date of your Chapter 7 Bankruptcy and not the recorded date of your foreclosure. The waiting period if you had a mortgage part of bankruptcy is four years from the discharge date of your bankruptcy, regardless of when the foreclosure was recorded.  In most cases, the foreclosure is recorded at a much later date than the discharge date of bankruptcy. This rule on mortgage part of bankruptcy only applies to conventional loans and not FHA Loans.

With FHA Loans, if you have a mortgage part of bankruptcy, there is a three year waiting period after the recorded date of your foreclosure to qualify for a FHA Loan. The three year waiting period start clock begins from the date of the sheriff’s sale of the foreclosed property and not the discharge date of the Chapter 7 Bankruptcy. The recorded date of the foreclosure can be much later than the discharge date of the Chapter 7 Bankruptcy.

If you had a mortgage part of bankruptcy and it has been at least four years from the discharge date of your Chapter 7 Bankruptcy, you will qualify for a conventional loan even if your foreclosure got recorded at a later date. Please contact me if you need to get qualified for a conventional loan at 262-716-8151 or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays to answer any questions you may have.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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