Do you know when you can buy a home again after a Short Sale, Bankruptcy or Foreclosure?

For a government loan FHA, VA or USDA, the rule is 3 years from the most recent date of the HUD1 from the Short Sale, discharge date of the Bankruptcy or Trustees Deed of sale for the Foreclosure. If a combination of the three was the case, again the three years� time clock begins from the most recent date of either. Conventional loans require 7 years from the most recent date of completion of the Short Sale, Bankruptcy or Foreclosure. Conventional loans typically have a lower rate and lower mortgage insurance costs.

We see that many times client's have moved out of their homes and on with their lives not knowing that the date of the Bankruptcy discharge does not mean that a Foreclosure is also complete. It can take months for a Foreclosure to be completed and during that time the home is still in the owner's name and is the owner's responsibility and liability. It is wise to keep an eye on the Foreclosure proceedings to find out exactly when the home is no longer your liability. It is also suggested that client's look into maintaining homeowner's insurance on the home until the Foreclosure is complete.

You may not know that you have options and may be able to purchase a home immediately after a Short Sale if you have continued to make your payments on time during the Short Sale and there are extenuating circumstances that have caused the Short Sale. We can help you with a plan to bring your credit up to what is needed to buy a home again. Call me to find out more.

Mortgage Interest Rates* Rates as of Wednesday, 21st September, 2011:

*Rates are subject to change due to market fluctuations and borrower's eligibility. Payment amounts do not include amounts for taxes and insurance. Actual payments will be higher.

For professional use only. Not intended for consumer distribution.