Waiting Period After Bankruptcy And Foreclosure

There are mandatory waiting period after bankruptcy and foreclosure to qualify for a residential mortgage loan.  If you had a prior bankruptcy, there is a mandatory two year waiting period after the discharge date of your bankruptcy to qualify for a residential FHA mortgage loan.  There is a three year mandatory waiting period after the recorded date of a foreclosure and/or deed in lieu of foreclosure to qualify for a FHA loan.  There is a three year waiting period after a short sale to qualify for a residential mortgage loan.  The waiting period time clock starts from the short sale date reflected on the HUD’s settlement statement.

Can I Get Mortgage Approval Prior To My Mandatory Waiting Period After Bankruptcy And Foreclosure?

Two to three years is a very long time to wait to qualify for a residential mortgage loan after a bankruptcy and/or foreclosure.  Many home buyers cannot get a straight answer when they ask a mortgage lender whether they can get a residential mortgage loan approval prior to their anniversary date of waiting period after bankruptcy and foreclosure.  This answer depends on the mortgage lender.  Many banks and credit unions will not accept a residential mortgage application until the two or three year waiting period after bankruptcy and foreclosure has been passed.  However, there are residential mortgage lenders that will accept your mortgage application prior to the two or three year waiting period after bankruptcy and foreclosure.  However, it needs to be close to the 2 or 3 year waiting period after bankruptcy and foreclosure.  Your mortgage loan application will be processed and underwritten and the mortgage loan underwriter will issue you a mortgage loan approval, HOWEVER, YOU CANNOT CLOSE ON YOUR MORTGAGE LOAN UNTIL THE 2 OR 3 YEAR MANDATORY WAITING PERIOD AFTER BANKRUPTCY AND FORECLOSURE has passed.

Home Buyers Who Are Close Of Meeting Waiting Period After Bankruptcy And Foreclosure

If you are reaching your two to three year mandatory waiting period after bankruptcy and foreclosure and you are a home buyer and like to start shopping for a home, consult a mortgage broker and see if they can process and underwrite your residential mortgage loan prior to the 2 or 3 year anniversary of your mandatory waiting period after bankruptcy and foreclosure.  If you get the thumbs up from the mortgage broker, he or she can issue you a pre-approval letter and you can start shopping for a new home.  Make sure that you do not set a closing date until after the 2 or 3 year mandatory waiting period.  Once you get a signed real estate purchase contract, your mortgage broker can start processing and underwriting your mortgage loan and get you a mortgage loan approval and condition that you cannot close until after your two years or three years mandatory waiting period after bankruptcy and foreclosure has passed.

Gustan Cho

www.gustancho.com

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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