When Can I Buy A Home Again?

Short-Sale & Foreclosed Home Owners Ask ‘What’s Next?’….

After a Short Sale or Foreclosure–How Soon CanB I Purchase Again?

I asked guest blogger Jeff Bannan with Cherry Creek Mortgage/Vancouver Mortgage to share with you all how the industry is taking shape on this topic. Take it away Jeff!!…………………
Each day I am in the office, I field calls from people referred to us for advice regarding how foreclosure and short sales impact their credit standing for future purchases.


After a foreclosure:

  • FHA and VA will consider a mortgage for an individual after 3 years
  • FNMA and FHLMC (commonly referred to as Fannie Mae and Freddie Mac) require 5 years.

For a short sale:

  • FHA and VA view it as a foreclosure and the guideline is the same 3 years
  • Fannie Mae and Freddie Mac B will consider an individual after only 2 years
  • Typically, a short sale reports as bSettledb.B B

It is important to note that this info reflects only the current guidelines for FHA, VA, FNMA and FHLMC & B are subject to change.


FNMA is currently considering changing to a requirement of a SEVEN year waiting period for anyone they consider bhaving simply walked away from their home without trying to resolve the problem.bB
If you are currently in a short sale orB foreclosure situation or have experienced either the past several years, B these are just a few of the documents I recommend keeping in a special file to prepare for the future:

  • All info from your short-sale/foreclosure listing: Listing agreement, price change forms, all documentation sent into the lenders holding all 1st, 2nd and 3rd loans,B and all offers received during the process of your short sale or foreclosure.
  • If you have emails or any additional documentation of this process, keep it in this file as well
  • Any documentation of job loss, loss of income, reduction in force, loss of hoursbanything that supports a change in your financial status.
  • Any information from your lawyer or additional legal documentation as you walked through your short-sale or foreclosure.

The reality is, even a few years down the road, it will be easy to forget, misplace or misfile these documents when you need them so prepare your file for your future home purchase now.
We believe it is important that to be fully informed about the impact of short sale and foreclosure that someone who finds themselves in this position consult an Attorney for legal counsel before taking action today to best protect themselves for their future.
Any question, any time–contact Jeff at 503-241-8185 or 360-944-8185. Jeff is a licensed mortgage professional in Oregon & Washington.

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