Monday, October 29, 2012

Waiting Periods After Bankruptcies, Foreclosures, and Short Sales


After a bankruptcy, a foreclosure, or a short sale, a potential home buyer must wait a certain period of time before they are eligible to get a mortgage.  The minimum length of time after a bankruptcy is 2 years, and the minimum length of time after a foreclosure or a short sale is 3 years.

In addition, the underwriting guidelines state that they must "re-establish" their credit.  Many buyers are unaware of this additional requirement, and it prevents them from getting a loan. 

Here's what re-establishing credit means: for the 12 months preceding the loan application date, the borrower must have a perfect payment record on all of their existing credit accounts.  In other words, they can't have any late payments for one full year before applying for the mortgage.

If you have any prospects who have had a bankruptcy, foreclosure, or short sale, do them a favor and tell them to make sure they are paying all of their bills.  Even one late payment will prevent them from getting a loan.

This "no late payments" rule ONLY applies to people who have had a bankruptcy, foreclosure, or short sale.  Everyone else is allowed to have late payments on their credit report and they can still get a mortgage.


Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

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