What Is The Waiting Period After A Short Sale Due To Bankruptcy Or Foreclosure?
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:
What Is The Shortest Waiting Period For Bankruptcy?
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.
How Do Fannie Mae And Freddie Mac Approach Bankruptcy?
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.
What About Extenuating Circumstances Leading To Foreclosure?
All agencies have extra rules to allow for extenuating circumstances. So, if you planned the foreclosure, the agencies can 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.