What is the Waiting Period to Buy after a Short Sale, Foreclosure or Bankruptcy?

Most of us have had family and friends not to mention ourselves that suffered from the great 2007 Real Estate Bust. We all know how devastating it was.  Many of us thought it would never end and truthfully it has not completely ended, but we can see the light at the end of the tunnel.  We know that there are better days ahead.

This disaster not only forced many to lose or abandon their homes but it had another debilitating effect in that it impaired millions of homeowners credit.  It is not uncommon, in today’s market, to see conforming mortgage lenders deny loans due to low FICO scores, bankruptcies, foreclosure or short sale.

However, it’s not just bad credit, low FICO scores, or even gaps in employment that can prevent borrowers from getting a home loan nowadays.  Lenders will deny a loan if a foreclosure, bankruptcy, short sale, deed-in-lieu of foreclosure is not seasoned…meaning that the homeowner has not gone through a waiting period to buy another home and enter another mortgage loan.    Did you know that more than one third of loans submitted today are turned away even though borrowers have re-built their credit?

Why?  Because mortgage lenders have developed guidelines that literally prohibit many borrowers from purchasing homes based on a seasoning requirement that is used to force borrowers to wait 2-4 years prior to purchasing another home.  Please review my matrix below to see the waiting period to buy required by lenders.

Most homeowners do no realize that it will take approx. 3-4 years to get back on their feet after undergoing hardships, such as, loss of job, reduction in pay, divorce, death, etc.  So, lenders are not re-missed in their guidelines to allow a lapse of time before granting another mortgage loan.

Believe me, after watching so many homeowners over the past 6-7 years struggle with making extremely high mortgage payments, only to save their credit, a struggling homeowner who concedes to bankruptcy, short sale, deed-in-lieu, or a foreclosure will need to have a break before jumping into another serious commitment…like a mortgage.

For any homeowner that has undergone any of these traumatic experiences, do not give up….all is not lost.  You will be able to buy another home….just give it a little time.



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