Waiting Period to Purchase after Foreclosure, Short Sale, or Bankruptcy

Many people may wish to purchase a new home, but feel they may not be eligible, because of a recent distressed sale of their home, through a short sale, foreclosure or bankruptcy.  Although it is not possible to purchase another home immediately, it can happen after a certain time period has passed, which may be shorter than you think.  That time period depends on the type of loan that is being used to purchase the new home and what type of distressed sale the home was sold through.

There are other factors that play a part in obtaining financing for the new home.  For example,  if the home was sold through a short sale and a conventional Fannie Mae loan is being sought, the Loan To Value ratio will come into play.  This type of loan can be obtained after only 2 yrs. have gone by after the short sale, but only if the Loan To Value (LTV) does not exceed an 80% ratio.  The amount of LTV will increase as the length of time increases since the short sale.  This is only in the case of a short sale and in the case of a conventional Fannie Mae loan and will require a considerable amount of cash to be accessible to the buyer.  Other types of sales and other types of loans all have different rules. 

If you would like a complete chart describing in detail what the various rules are for the different types of distressed sales and loans, please contact me and I will be very happy to send you the entire chart via an email or you may wish to contact your trusted lender.



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Topic:
ActiveRain Community
Location:
Colorado
Tags:
new loan
short sale
foreclosure
bankruptcy
thomthomteam
adams county colorado

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Rainmaker
637,292
Elite Home Sales Team
Tenacious and skilled real estate team
Keller Williams Realty

We should all start to help those who were hurt in the mortgage meltdown to know that after 2 yrs they can start over.

January 08, 2012 01:09 AM
Rainmaker
394,328
Cameron Novak
Featured Corona Real Estate Agent Team
The Homefinding Center

We have a terrific handout we use at our office to show the various time frames depending on the buyer's history.  Good info.
Corona Real Estate

January 08, 2012 04:24 AM
Rainer
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Pam Hills
ASP/IAHSP- Stager Miami, FL, Creative Minds Innovatively At Work
Innovative Artistry

Dear Karen - I think that is great info to share.  I 'suggest' so that may be more juice could be given...?  :)  Great News for many Home Buyers I am sure.

January 08, 2012 03:53 PM
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Rainmaker
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Karen Thompson & Rhonda Thomas Thom Thom Team, GRI, CDPE, Realtor

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