This BLOG On Waiting Period After Foreclosure Of Time Share Property Was UPDATED On January 7th, 2019
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
In this article, we will cover and discuss the rules on time share foreclosures to qualify for a mortgage.
There Is No Waiting Period After Foreclosure Of Time Share Property
Under HUD Guidelines, there are mandatory waiting period requirements to qualify for FHA Loans after the following:
- Chapter 7 Bankruptcy
- Chapter 13 Bankruptcy
- 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 discharged 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 an FHA loan on a residential one to four-unit property.
- Just because the borrower has passed the 2-year mandatory waiting period does not automatically qualify him or her for FHA Loans
- Lenders want to see re-established credit and no late payments after a bankruptcy discharge
Most lenders want to see 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 FHA Loans.
- Home Buyers that cannot meet the mandatory three-year waiting period after a housing event, Gustan Cho Associates 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
- Anyone with a prior foreclosure, deed in lieu of foreclosures, or short sales can qualify for FHA as well as conventional 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 us at Gustan Cho Associates Mortgage Group at 1-262-716-8151 or text us for faster response. We are available 7 days a week, evenings, weekends, and holidays via phone or email us at firstname.lastname@example.org.