Mortgage After Foreclosure
If you had a prior foreclosure, there is a minimum of a 3 year waiting period from the date of the sheriff’s sale or the date the deed was transferred out of your name into the name of the mortgage lender and recorded. Just because the three years has passed from the date you turned in your keys to the bank does not mean that date if the effective date of the waiting period. It has to be the actual date that the deed of the house was transferred out of your name and into the mortgage lenders name and recorded. That recording date is the effective date and the clock starts effective that date.
Earliest date I can qualify for a mortgage after foreclosure
If you had a prior deed in lieu of foreclosure or a short sale, you can qualify for a conventional mortgage loan after 2 years from the date of the sheriff’s sale or the date the deed was transferred out of your name into the name of the mortgage lender and officially recorded at the county recorder of deeds. However, there is a minimum of a 20% down payment required on the new home purchase. You must remember and realize that the waiting clock does not start until the deed is fully transferred out of your name and into the name of the mortgage lender and officially recorded at the county recorder of deeds office, signed, stamped, and dated.
The above program is for only conventional mortgage loans. FHA treats a deed in lieu of foreclosure or short sale just like a regular foreclosure and it is the regular three year waiting period.
Remember that it is the recorded date
The effective date that your foreclosure waiting period is over to qualify for a mortgage loan is three years from the recorded date of when the name of the deed was transferred out of your name and not the mortgage release date. Many folks thing that just because they have a mortgage release at a certain date that means that is the effective date. That is not the case. It is the recorded date when the mortgage release was recorded with the clerk of the county recorders office.
2015 Update On Conventional Loan After Deed In Lieu Of Foreclosure And/Or Short Sale
The 2 year waiting period after a deed in lieu of foreclosure and/or short sale with a 20% down payment to qualify for a conventional loan is no longer in effect. Fannie Mae has changed the waiting period to a four year waiting period after a deed in lieu of foreclosure and/or short sale with 5% down payment to qualify for a conventional loan. Another positive change with Fannie Mae mortgage lending guidelines is that if you have a mortgage as part of your bankruptcy, the waiting clock starts from the date of the discharge date of the bankruptcy and not the recorded date of the foreclosure.