Waiting Period After Foreclosure Of Time Share Property

This BLOG On Waiting Period After Foreclosure Of Time Share Property Was UPDATED On November 8th, 2017

Time Shares were extremely popular prior to the 2008 Real Estate and Market Collapse.

  • Many consumers were suckered into buying time shares.
  • However, many time shares turned out to be flops and many time share buyers had buyers remorse.
  • With the combination of the Great Recession and buyers remorse, time share owners ended up foreclosing on their time shares.
  • Many time share owners ended up getting foreclosed.
  • Like regular home foreclosures, time share companies took their time in foreclosing on the time share properties.
  • The good news is that under HUD Guidelines, time shares are not considered real estate properties.
  • Time shares loans are considered installment loans and not mortgages.
  • There is NO WAITING PERIOD AFTER FORECLOSURE OF TIME SHARE PROPERTY.

Under FHA Guidelines, there are mandatory waiting period requirements to qualify for FHA Loans after the following:

  • Chapter 7 Bankruptcy
  • Chapter 13 Bankruptcy
  • Foreclosure
  • Deed In Lieu Of Foreclosure
  • Short Sale

However, there is no waiting period after foreclosure of time share property.

Waiting Period After Bankruptcy To Qualify For FHA Loans

There is a mandatory waiting period after a Chapter 7 Bankruptcy discharge date. The waiting period of 2 years from the date of the Chapter 7 Bankruptcy discharge date in order for a mortgage loan borrower to qualify for a FHA Loan on a residential one to four unit property.

  • Just because the mortgage loan borrower has passed the 2 year mandatory waiting period does not automatically qualify him or her for a FHA mortgage loan. 
  • Mortgage lenders want to see re-established credit and no late payments after a bankruptcy discharge. 
  • Most mortgage lenders want to see an automated approval via Fannie Mae’s Automated Underwriting System in order to proceed with the mortgage underwriting process. 

Waiting Period After Foreclosure, Deed In Lieu Of Foreclosure, Short Sale

There is a mandatory waiting period of three years after the recorded date of the foreclosure, deed in lieu of foreclosure, or short sale in order to qualify for a FHA mortgage loan.

  • Home Buyers that cannot meet the mandatory three year waiting period after a housing event, The Gustan Cho Team at USA Mortgage has NON-QM Loans
  • NON-QM Loans have no waiting period after foreclosure, deed in lieu of foreclosure, short sale
  • NON-QM Loans does require 10% to 20% down payment dependent on credit scores 
  • NON-QM Loans have higher mortgage interest rates than traditional government and/or conventional loans
  • NON-QM Loans are used as a temporary bridge loan until the borrower meets traditional mortgage lending guidelines

Waiting Period After Foreclosure, Deed In Lieu Of Foreclosure, Short Sale On Time Share

Time shares used to be extremely popular and many Americans have had foreclosures and/or deed in lieu of foreclosure on their time shares.

  • FHA and Fannie Mae do not consider foreclosures and/or deed in lieu of foreclosures as regular foreclosures and waiting periods after a foreclosure, deed in lieu of foreclosures, or short sales. 
  • Waiting periods do not apply for time shares and anyone with a prior foreclosure, deed in lieu of foreclosures, or short sales can qualify for FHA insured mortgage loans as well as conventional mortgage loans.

Many lenders still consider time share foreclosures as real estate foreclosures. Home Buyers who have previous time share foreclosures and need to qualify for FHA Loans, please contact The Gustan Cho Team at USA Mortgage at 1-262-716-8151. Call us or text us for faster response. We are available 7 days a week, evenings, weekends, and holidays via phone or email us at gcho@usa-mortgage.com.

Gustan Cho NMLS ID # 873293

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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