Wednesday, March 13, 2013 - Article by: Barb Lanis - The Federal Savings Bank -
There are many people anxious to re-enter home ownership after suffering through a Short Sale, Foreclosure, or Deed-in-Lieu misfortune.
Be prepared for the Process of obtaining a new mortgage. You must be diligent about moving forward the right way!
So what stands in your way? YOU want to start over, but will the Lenders allow you to do this?
Keep in mind that No One is entitled to a mortgage. Not me, not you. We must prove ourselves worthy to repay. In my humble opinion, the years leading up to the financial crisis led many to believe that somehow there was a right to a mortgage. Wrong. It is no different than if we lend money to a family member or friend. We expect to be repaid with limited collection efforts regarding the debt owed.
Be prepared. You WILL be asked for an explanation as to Why You Had A Foreclosure / Short Sale / Deed-in-Lieu. Even though you may have met the Wait Period requirements, be prepared for this question. And, please don't respond to your new lender by saying you were just upset about the property values?
NOTE: THE WAIT PERIODS BELOW ARE BASED ON THOSE PUBLISHED BY THE FOLLOWING GUARANTORS AS OF 3/13/2013. ALSO NOTE THAT THE WAIT PERIOD IS BASED UPON THE DATE THAT THE PROPERTY WAS TRANSFERRED OR DEEDED OUT OF YOUR NAME, NOT THE DATE THAT YOU MOVED OUT OF THE PROPERTY OR RECEIVED A NOTICE OF FORECLOSURE.
FHA : 3 years from completion date
Freddie Mac: 4-6yrs&11 mos. with a minimum of 10% down payment
VA: 2 years
Fannie Mae: 7 Years 10% down payment
Short Sale or Deed-in-Lieu
FHA : 3 years
Freddie Mac: 4 Years
Fannie Mae: 2 years with 20% down payment -or- 4 years with 10% down
Didn't find the answer you wanted? Ask one of your own.