Dear Friends,
Many have asked:
HOW LONG DO I WAIT TO BUY AFTER LOSING MY HOME?
Answer: The waiting period to buy a home after losing your existing home depends on your circumstance. Well, you already knew that, right?!? So here are a few different scenarios, but calling me now for a full review is the best method. My number is (832) 341 - 3066. Here is some information until we speak...
Fannie Mae revised its guidelines and now addresses separate waiting periods depending on the type of foreclosure. Moreover, if you have documented extenuating circumstances, this will have a direct bearing on the number of years you will have to wait to get a conventional or government (FHA, VA, etc.) loan.
Who or what is Fannie Mae?
The entity that holds great power in the conventional and FHA markets is Fannie Mae. They are America's largest mortgage buyer, a private corporation, which buys mortgage loans in the secondary market. The secondary market is where bank buy and sell loans amongst themselves for a profit. Because Fannie Mae would end up with the properties back if borrowers default, Fannie Mae has a strong interest in setting forth stable, realistic guidelines to lessen the chance a borrower will go into foreclosure. Unlike what we experienced the last five years of lending.
So what are Documented Extenuating Circumstances? Here is an example of what Fannie Mae may allow for extenuating circumstances, of course this list is a suggestion. Call me now and let's look at your scenario.
•Death (not yours, of course)
•Illness
•Job Transfer
•Accident Resulting in Severe Injury
Generally, extenuating circumstances are things that happen beyond your control, which dramatically affect your ability to continue making timely payments on your mortgage. With documented extenuating circumstances, the waiting period is less than without documentation.
Here are a few suggestions on the waiting Period to Buy After Foreclosure:
•Buying After a Foreclosure
The waiting period is 5 years up to 7 years.
•Buying After a Foreclosure With Extenuating Circumstances
The waiting period is 3 years up to 7 years.
•Buying After After a Deed-in-Lieu of Foreclosure
The waiting period is 4 years up to 7 years.
•Buying After a Deed-in-Lieu of Foreclosure With Extenuating Circumstances
The waiting period is 2 years up to 7 years.
•Buying After a Short Sale
The waiting period is 2 years. However, if a seller does not have a 60-day late pay, that seller may immediately buy another home. They want to promote you staying current on your payments while the home is on the market as a short sale which benefits you and the bank.
Fannie Mae and lenders are constantly updating with new guidelines. The above policies are in effect for loan applications submitted after August 1, 2008, please call me now to get you back on the path to home ownership!
Kind Regards
Namaste
