Bankruptcies, Foreclosures, Divorce

Waiting Periods for
Bankrupts & Foreclosures

There’s a common misconception; that after a short sale, bankruptcy or foreclosure, you’ll have to wait 7 years before you can get a new mortgage.

Here’s some good news regarding the waiting periods.

FHA has NO waiting period on a short sale, if you are current at the time of the sale, and on time for the past 12 months.  If you were in default at time of the short sale, FHA will make you wait 3 years. The shortest waiting periods for Bankruptcy is on chapter 13. Where FHA and VA only 1 year waiting period! They will require 2 years for chapter 7 or 11.

Fannie Mae and Freddie Mac are more conservative and will either require more money down or make you wait up to 7 years although with specific extenuating circumstances, they too will shorten the wait periods to 2 years. All agencies have extra rules to allow for extenuating circumstances. S0, if you planned the foreclosure, the agencies could require that you wait 7 years regardless. BUT if you had a serious illness, you might be able to shorten the waiting period to 1 year There is hope at the end of the tunnel and it can come a lot sooner than you thought.

However, guidelines change or may be subject to lender overlays which add on more conservative rules to what the agencies will allow. So, shop around and visit the agency websites at and


"As a real estate agent I deal with a lot of different lenders, from global companies to the local ones (which I prefer). From the first communication with Kurt and his team I could tell it was going to be a smooth and seamless transaction! They are very responsive, thorough and professional. It was a true pleasure to work with them and hope to continue to work with them in the future. I will definitely be adding them to my list of referred lenders and will be referring clients in need of their services, which I do not take lightly as it is my name and reputation that goes along with my referral. I have full faith in all of their capabilities to ensure my clients are getting help in every aspect during what can be a stressful and scary time and purchase. They truly care about their clients and go above and beyond! Thanks again! (Bonus note- not many lenders will show up to a closing, let alone with a celebratory bottle of champagne!!)"

Like to find out more and talk to an experienced professional who can answer your questions?

Like to see if you can qualify as a foreign national for finance to purchase property in the USA?

Call Kurt (He’s easy to talk to)