There are new 2016 Fannie Mae Guidelines On Mortgage After Foreclosure and qualifying for a conventional loan. Both government sponsored entities (GSEs) Fannie Mae and Freddie Mac treat foreclosure and deed-in-lieu of foreclosure differently than FHA does. All mortgage programs out there have their own specific guidelines with regards to how they treat foreclosures and deed-in-lieu of foreclosures. For example, FHA has a mandatory waiting period of 3 years after the recorded date of the foreclosure or deed-in-lieu of foreclosure. The one thing that is a constant across the board with regards to waiting periods is the fact that the time period begins once there is a sheriff’s sale date or a recorded date of the foreclosure. Just because you may have surrendered your home before it was taken doesn’t mean this is when the clock starts as you must wait for all the paperwork to be filed and completed.
When the housing market collapsed there were thousands upon thousands of foreclosures and deed-in-lieu of foreclosures processed because homeowners couldn’t afford their homes anymore. Since there was such a back-up of cases and paperwork with the different counties across the United States a lot of these waiting periods didn’t start until more than a year after the homeowners had already vacated their home. This is due to the fact that the deed to the home was still in the borrowers name and not the bank.
Fannie Mae and Freddie Mac have different waiting periods to abide by with regards to foreclosure or deed-in-lieu of foreclosure. 2016 Fannie Mae Guidelines On Mortgage After Foreclosure mandates that there is a 7 year waiting period for a home buyer to purchase another home by ways of a conventional loan. However, after a deed-in-lieu of foreclosure, the waiting period is only 4 years. On a separate note, there is also a 4 year waiting period after a short-sale. You need to remember that you need to start the waiting period after sheriff’s sale date or recorded date of foreclosure.
If there is a bit of positive news about this it is the fact that if your conventional mortgage was included as part of a bankruptcy, the 2016 Fannie Mae Guidelines for mortgage after bankruptcy states that if you went through a Chapter 7 bankruptcy, the waiting period for a loan starts on the discharge date of the bankruptcy and not the date of your foreclosure. The waiting period for a loan after bankruptcy is only 4 years versus the 7 year waiting period for a loan after foreclosure. This is why if borrowers went through bankruptcies, it is in their best interest to use their bankruptcy date rather than the foreclosure date which was probably recorded a lot later.
If you have had a troubled past and have gone through a foreclosure or a deed-in-lieu of foreclosure, you need to have an experienced loan officer on your side to navigate all the rules to getting you a home again. Look no further than Loan Consultants as we have the expertise to get you back into a home ASAP. Please feel free to call me at any time 888-900-1020, email me at firstname.lastname@example.org, or inquire through my website www.loanconsultants.org.