Waiting Period After Foreclosure Of Time Share Property

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
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 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 1-800-900-8569 or text us for faster response. We are available 7 days a week, evenings, weekends, and holidays via phone or email us at gcho@gustancho.com.