• Toni F. Ryan

Life After Bankruptcy, Foreclosure & Short Sale



A common questions many home buyers have today is, “How long do I have to wait before obtaining financing after a bankruptcy, foreclosure or short sale?”

Below is an overview based on credit issue:

Bankruptcy 

Conventional • Ch. 7 or 11: 2 years with extenuating circumstance*, 4 year without and re-established credit • CH 13 – 2 years from discharge date or 4 years from dismissal date

FHA • Ch. 7: 2 years from discharge date with re-established credit – no delinquencies for 2 years • Ch. 13: 1 year of the payout date must elapse and satisfactory payment performance with permission from the court to enter into a mortgage

VA •  Ch. 7: 2 years from discharge date with re-established credit – no delinquencies for 2 years • Ch. 13: 1 year of the payout date must elapse and satisfactory payment performance with permission from the court to enter into a mortgage

Foreclosure

Conventional: 7 years from completion date FHA:  3 years from completion date VA: 2-3 years from completion date with good explanation of circumstances – must have sufficient entitlement.

Short Sale:

Conventional: 2 years – (Changing to 4 years on 8/15/14) with extenuating circumstances*- 4 years without extenuating circumstances FHA: 1 year if qualified for “Back to Work Program” – 2 years with extenuating circumstances* or all debts were current until the short sale date - 3 years if short sale was not due to extenuating circumstances or debts were not paid on time before short sale. VA: 2-3 years from completion date with good explanation or circumstances. Must have sufficient entitlement for new loan

NOTE: Currently, Conventional financing backed by FNMA has offered a wait period for short sales as low as 2 years with extenuating circumstances but it is important to note that for those loan applications received after August 15th, the wait period increases to 4 years. If you fit into the above category and are considering financing, you should act now or you will be limited to FHA financing and possibly VA, if entitled to VA programs and have sufficient entitlement for a new loan. Time is of the essence to experience the joy of homeownership. *Always check with your mortgage professional for acceptable extenuating circumstances and any other changes that may have changed to the  programs listed since this printing.


ABOUT THE AUTHOR


Toni F. Ryan | NMLS#230507

Senior Loan Officer | Synergy One Lending


Toni F. Ryan has over 20 years experience in mortgage lending - both on the wholesale and retail levels. She believes that education is key to making the best decision for YOU! She shares her insight into the lending world here and encourages your feedback. Don't forget to connect on Facebook!

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The information contained herein is for informational purposes and should not be construed as personal advice. Please consult your mortgage professional BEFORE making any changes to your financial profile. No guarantees or promises are expressed and by visiting this site, you agree to not hold Toni F. Ryan or Synergy One Lending responsible for any decisions you make based on the information stated. All of the content here is the sole property of ToniRyan.com and cannot be duplicated without express written consent. If you choose to reference this material - please include a link to the source and state the authorship clearly.Synergy One Lending is licensed by the California Department of Business Oversight under the California Residential Mortgage Lending Act, Synergy One Lending Inc. NMLS 1025894. 3131 Camino Del Rio N 190, San Diego, CA 92108

© 2020 by Toni F. Ryan - NMLS#230507

Direct/Text (530) 305-7668  |  tryan@S1L.com

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(530) 305-7668

Synergy One Lending Inc., NMLS 1025894. 3131 Camino Del Rio N 190, San Diego, CA 92108. Alabama Consumer Credit License #22123; Arizona Mortgage Banker License 0926603; Arkansas Combination Mortgage Banker/Broker/Servicer License 109250; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act – California License 4131356; District of Columbia Mortgage Dual Authority License MLB1025894; Hawaii Mortgage Loan Originator Company License #HI-1025894; Illinois Residential Mortgage Licensee #MB.6761115; Maine Supervised Lender License 1025894; Maryland Commissioner of Financial Regulation - Mortgage Lender License 21678; Minnesota Residential Mortgage Originator Exemption #MN-OX-1025894; Nevada Mortgage Broker License #4317. Licensed by the New Hampshire Banking Department 19926-MB; Licensed by the New Jersey Banking and Insurance Department – New Jersey Residential Mortgage Lender License 1025894; New Mexico Mortgage Loan Company License 1025894; Oregon Mortgage Lending License ML- 5208; Rhode Island Lender License #20163229LL. Rhode Island Loan Broker License #20163230LB; Vermont Lender License 6891. Washington Consumer Loan Company License CL-1025894. Toll Free #: (877) 978-1922. Subject to Credit Approval. www.nmlsconsumeraccess.org

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Loan Consultant | NMLS #230507

SYNERGY ONE LENDING

Corporate NMLS#1025894