How Fannie Treats Short Sale, Deed In Lieu, Bankruptcy, And Foreclosure…

I wanted to take a moment to let you know how Conventional Fannie Mae and Freddie Mac guidelines treat Short Sale, Deed In Lieu, Bankruptcy, and Foreclosure…

Here’s a helpful chart for you…

Short Sale Deed-In-Lieu of Foreclosure	4 years from completion date for 80.01% – 90% LTV 2 years from completion date for 80% LTV or less 7 years (Unless DU approves earlier) If extenuating circumstances exist: DU: 2 years from completion date with max 90% LTV/HCLTV LP: 2 years from completion date on owner occupied purchase or non-cash out refinance only, max 90% LTV or max LTV per program
Refinance of previously modified/restructured loans (no principal forgiveness)	Allowed with evidence of a minimum of 24 consecutive months of timely mortgage payments after the terms of the loan were restructured
Bankruptcy: Chapter 7 or 11	4 years from discharge or dismissal date. If extenuating circumstances exist – 2 years from discharge or dismissal date.
Bankruptcy: Chapter 13	4 years from dismissal date (borrower did not complete the Chapter 13 plan) or 2 years from discharge date. If extenuating circumstances exist – 2 years from discharge or dismissal date.
Multiple Bankruptcy Filings within the last 7 years	5 years from the most recent discharge date or dismissal date. If extenuating circumstances exist – 3 years from discharge or dismissal date.
Foreclosure	7 years from completion date of foreclosure action as reported on the credit report or other foreclosure documents* If extenuating circumstances exist: 3 years from the completion date of foreclosure action as reported on the credit report or other foreclosure documents* Purchase-90% or program limit, owner occupied only Refinance – Limited cash-out only, all occupancy types *Other restrictions may apply. See underwriting guidelines and mortgage insurance company guidelines (if applicable) for complete details

That’s it for today. 

Thanks for reading!

Brett

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