How Long Buyers Must Wait before Obtaining Financing After Bankruptcy, Foreclosure, and Short Sales

The facts about how long buyers must wait before obtaining financing following bankruptcy, foreclosure, or a short sale:

LegendFM = Financial ManagementEC = Extenuating Circumstances

Conventional FHLMC (Freddie Mac)

BK – Ch. 7 or 11: 4 yrs (FM) or 2 yrs (EC)
BK – Ch. 13: 2 yrs from discharge or 4 yrs from dismissal (FM); 2 yrs from discharge or dismissal (EC)
Multiple BK – 5 yrs
Foreclosure: 7 yrs (FM) or 3 yrs (EC)
Deed in Lieu of Foreclosure or Short Sale: 4 yrs (FM) or 2 yrs (EC)

FNMA Conforming (Fannie May)

BK – Ch. 7 or 11: 4 yrs (FM) or 2 yrs (EC)
BK – Ch. 13: 2 yrs from discharge or 4 yrs from dismissal (FM); 2 yrs from discharge or dismissal (EC)
Foreclosure: 7 yrs (FM) or 3 yrs (EC)
Deed in Lieu of Foreclosure or Short Sale: 4 yrs for LTV 80.01-90% (FM) or 2 yrs (EC)

Conventional Non-Conforming

BK Ch 7, 11, or 13: 5 yrs w/ re-establishment of acceptable credit
Foreclosure, Deed in Lieu of Foreclosure: 4 yrs w/ re-establishment of acceptable credit
Short Sale: 4 yrs, w/ re-establishment of acceptable credit, plus loan paid off was current & no delinquencies in past 12 months.

American Dream

FHA

BK Ch 7: 2 yrs w/ re-established credit or chose not to incur new debt (FM), or 12 mos-2 yrs w/ documentation (EC)
BK Ch 13: need 1 yr into payout period, satisfactory payment history, & court permission
Foreclosure, Deed in Lieu, Short Sale: 3 yrs w/ re-established credit (FM), or documentation of EC w/ re-established credit

Portfolio

BK, Foreclosure, Deed in Lieu, Short Sale: 7 years
Exceptions- Short Sale 4 years, BK CH 13- 5 years due to extenuating circumstances

Important: You should check with legal or accounting professionals to examine your individual situation in detail.

Compliments of Brian Campbell of U.S. BankPhone: 503-309-9800brian.campbell@usbank.com210 E. Main StreetHillsboro, OR 97123