I wanted to take a moment to let you know how Conventional Fannie Mae and Freddie Mac guidelines treat Short Sale, Deed In Lieu, Bankruptcy, and Foreclosure…

Here’s a helpful chart for you…

Short Sale

Deed-In-Lieu of
Foreclosure4 years from completion date for 80.01% – 90% LTV
2 years from completion date for 80% LTV or less
7 years (Unless DU approves earlier)
If extenuating circumstances exist:

DU: 2 years from completion date with max 90% LTV/HCLTV
LP: 2 years from completion date on owner occupied purchase or non-cash out refinance only, max 90% LTV or max LTV per program

Refinance of previously
modified/restructured
loans (no principal
forgiveness)Allowed with evidence of a minimum of 24 consecutive months of timely mortgage payments after the terms of the loan were restructured Bankruptcy:
Chapter 7 or 114 years from discharge or dismissal date.
If extenuating circumstances exist – 2 years from discharge or dismissal date. Bankruptcy: Chapter 134 years from dismissal date (borrower did not complete the Chapter 13 plan) or 2 years from discharge date.
If extenuating circumstances exist – 2 years from discharge or dismissal date. Multiple Bankruptcy Filings
within the last 7 years5 years from the most recent discharge date or dismissal date.
If extenuating circumstances exist – 3 years from discharge or dismissal date. Foreclosure7 years from completion date of foreclosure action as reported on the credit report or other foreclosure documents*
If extenuating circumstances exist: 3 years from the completion date of foreclosure action as reported on the credit report or other foreclosure documents*