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Categories: Brett's Mortgage Blog

Minimum Waiting Period For Bankruptcy And Foreclosure.

I wanted to give you the basic waiting periods for Bankruptcies, Foreclosures, and Deed in Lieu and Short Sales for FHA and Conventional loans.

Waiting periods for FHA:

Bankruptcies: 2 years. …Note, if there was a mortgage included in the BK, you need to determine when the property was subsequently foreclosed to make sure the loan meets those parameters.

It’s possible to get a loan while your in Chapter 13 Bankruptcies with at least 12 months of clean pay history, and permission from your trustee.

Foreclosures, Deeds in Lieu and Pre-Foreclosures (short sales): 3 years

 

Waiting periods for Conventional:

Chapter 7 Bankruptcy: 4 years

Chapter 13 Bankruptcy: 2 years from discharge, 4 years from dismissal

Multiple BK Filings: 5 years if more than one filing in the past 7 years

Foreclosure: 7 years

Pre-Foreclosure/Deed in Lieu: 2 years @ 80% LTV
4 years @ 90% LTV
7 years above 90% LTV

Note: You need to have established good credit history after the bankruptcy / foreclosure.

That’s it for today!

Have a good day! …and thanks for reading.

Brett

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Brett Sampson

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