IrvineRealtor_IHB
New member
This is not an endorsement, nor is it to be construed as legal advice.
I did request this from my direct lender contact from my office and hope it will provide some clarity to those interested.
Formatting is not transferring well, but hopefully is still clear enough.
I hope you find this helpful and informative.
-IrvineRealtor
<em><strong>How Long Will It Take To Recover?</strong>
With record numbers of bankruptcies, foreclosures and short sales occurring in today?s
economy, the guidelines for obtaining a new mortgage have changed.
<strong>Action Conforming/Non-Conforming</strong>
Bankruptcy (all except Chapter 13) 4 years from either the discharge or the
dismissal date of the bankruptcy action.
Chapter 13 Bankruptcy 2 years from the discharge date, or
4 years from the dismissal date.
Exceptions for Extenuating 2 years from the BK discharge or dismissal date. Circumstances ? all BK actions No exceptions are permitted to the
2 year time period after a Chapter 13 discharge.
Multiple Bankruptcy Filings 5 years from the most recent dismissal or
discharge date is required for borrowers with
more than one bankruptcy filing within the
past 7 years.
Exceptions for Extenuating 3 years from the most recent discharge or
Circumstances ? Multiple dismissal date.
Bankruptcy Filings Note: The most recent bankruptcy filing must
have been the result of extenuating circumstances.
Foreclosure 5 years from the completion date
Additional requirements that apply after 5 years
Up to 7 years following the completion date:
? The purchase of a primary residence is permitted with a minimum 10% down payment and a minimum credit score of 680.
? Purchase of a second home or investment property is not permitted.
? Limited cash-out refinances are permitted for all occupancy types pursuant to the eligibility requirements in effect at the time.
? Cash-out refinances are not permitted for any occupancy type.
Exception for Extenuating Circumstances ?
<strong>Foreclosure </strong> 3 years for the completion date
Addition requirements that apply after 3 years up to
7 years following the completion date:
? The purchase of a primary residence is permitted with a minimum 10% down payment.
? Purchase of a second home or investment property is not permitted.
? Limited cash-out refinances are permitted for all occupancy types pursuant to the eligibility requirements in effect at the time.
? Cash-out refinances are not permitted for any occupancy type.
<strong>Deed-in-Lieu of Foreclosure </strong> 4 years from completion date (date deed-in-lieu was
Executed)
? Borrower may purchase a property secured by a primary residence, second home or investment property with the greater of 10% minimum down payment or the minimum down payment required for the transaction.
? Limited cash-out and cash-out transactions secured by a primary residence, second home or investment property are permitted pursuant to the eligibility requirements in effect at that time.
Exceptions for Extenuating 2 years from completion date
Circumstances ? Deed-In-Lieu Additional requirements that apply after 2
of Foreclosure years up to 7 years following the completion
date;
? Borrower may purchase a property secured by a primary residence, second home or investment property with the greater of 10% minimum down payment or the minimum down payment required for the transaction
? Limited cash-out and cash-out transactions secured by a primary residence, second home or investment property are permitted pursuant to the eligibility requirements in effect at that time.
<strong>Time period after Pre-Foreclosure Sale</strong> 2 years from completion date
Note: No exceptions are permitted to the 2 year
time period due to extenuating circumstances.
<strong>Note: ?Pre-Foreclosure? is a short sale.</strong>
?Extenuating circumstances are created by non-recurring events that are beyond the customer?s control, which result in a sudden, significant, and prolonged reduction in income, or a catastrophic increase in financial obligations.
<blockquote><u><strong>FHA</strong></u>
<strong>Bankruptcies
(Chapter 7)</strong>
Fully discharged at least 2 years
Schedule of debtors and discharge forms unless credit report provides discharge date.
The borrower must have re-established good credit or chosen not to incur new credit obligations. The borrower also must have demonstrated a documented ability to responsibly manage his or her financial affairs. No delinquent credit after bankruptcy. Detailed credit explanation.
<strong>(Chapter 13)</strong>
1 full year timely payments made. Trustee approved. No delinquencies. Detailed credit explanation.
<strong>Foreclosures/Deed in Lieu</strong>
Released at least 3 years and detailed credit explanation.</blockquote>
<blockquote><u><strong>VA</strong></u>
<strong>Bankruptcies
(Chapter 7)</strong>
Fully discharged at least 2 years. Schedule of debtors and discharge forms unless credit report provides discharge date. Credit re-established (with minimum 1-year history). No delinquent credit after bankruptcy. Detailed credit explanation.
<strong>(Chapter 13)</strong>
1 full year timely payments made. Trustee approved. No delinquencies or debts outside of bankruptcy. Detailed credit explanation.
<strong>Foreclosures/Deed in Lieu</strong>
Fully released 2-3 years. Detailed credit explanation.</blockquote>
Short sales follow Foreclosure guidelines.
The guidelines are effective as of February 1st, 2009.</em>
I did request this from my direct lender contact from my office and hope it will provide some clarity to those interested.
Formatting is not transferring well, but hopefully is still clear enough.
I hope you find this helpful and informative.
-IrvineRealtor
<em><strong>How Long Will It Take To Recover?</strong>
With record numbers of bankruptcies, foreclosures and short sales occurring in today?s
economy, the guidelines for obtaining a new mortgage have changed.
<strong>Action Conforming/Non-Conforming</strong>
Bankruptcy (all except Chapter 13) 4 years from either the discharge or the
dismissal date of the bankruptcy action.
Chapter 13 Bankruptcy 2 years from the discharge date, or
4 years from the dismissal date.
Exceptions for Extenuating 2 years from the BK discharge or dismissal date. Circumstances ? all BK actions No exceptions are permitted to the
2 year time period after a Chapter 13 discharge.
Multiple Bankruptcy Filings 5 years from the most recent dismissal or
discharge date is required for borrowers with
more than one bankruptcy filing within the
past 7 years.
Exceptions for Extenuating 3 years from the most recent discharge or
Circumstances ? Multiple dismissal date.
Bankruptcy Filings Note: The most recent bankruptcy filing must
have been the result of extenuating circumstances.
Foreclosure 5 years from the completion date
Additional requirements that apply after 5 years
Up to 7 years following the completion date:
? The purchase of a primary residence is permitted with a minimum 10% down payment and a minimum credit score of 680.
? Purchase of a second home or investment property is not permitted.
? Limited cash-out refinances are permitted for all occupancy types pursuant to the eligibility requirements in effect at the time.
? Cash-out refinances are not permitted for any occupancy type.
Exception for Extenuating Circumstances ?
<strong>Foreclosure </strong> 3 years for the completion date
Addition requirements that apply after 3 years up to
7 years following the completion date:
? The purchase of a primary residence is permitted with a minimum 10% down payment.
? Purchase of a second home or investment property is not permitted.
? Limited cash-out refinances are permitted for all occupancy types pursuant to the eligibility requirements in effect at the time.
? Cash-out refinances are not permitted for any occupancy type.
<strong>Deed-in-Lieu of Foreclosure </strong> 4 years from completion date (date deed-in-lieu was
Executed)
? Borrower may purchase a property secured by a primary residence, second home or investment property with the greater of 10% minimum down payment or the minimum down payment required for the transaction.
? Limited cash-out and cash-out transactions secured by a primary residence, second home or investment property are permitted pursuant to the eligibility requirements in effect at that time.
Exceptions for Extenuating 2 years from completion date
Circumstances ? Deed-In-Lieu Additional requirements that apply after 2
of Foreclosure years up to 7 years following the completion
date;
? Borrower may purchase a property secured by a primary residence, second home or investment property with the greater of 10% minimum down payment or the minimum down payment required for the transaction
? Limited cash-out and cash-out transactions secured by a primary residence, second home or investment property are permitted pursuant to the eligibility requirements in effect at that time.
<strong>Time period after Pre-Foreclosure Sale</strong> 2 years from completion date
Note: No exceptions are permitted to the 2 year
time period due to extenuating circumstances.
<strong>Note: ?Pre-Foreclosure? is a short sale.</strong>
?Extenuating circumstances are created by non-recurring events that are beyond the customer?s control, which result in a sudden, significant, and prolonged reduction in income, or a catastrophic increase in financial obligations.
<blockquote><u><strong>FHA</strong></u>
<strong>Bankruptcies
(Chapter 7)</strong>
Fully discharged at least 2 years
Schedule of debtors and discharge forms unless credit report provides discharge date.
The borrower must have re-established good credit or chosen not to incur new credit obligations. The borrower also must have demonstrated a documented ability to responsibly manage his or her financial affairs. No delinquent credit after bankruptcy. Detailed credit explanation.
<strong>(Chapter 13)</strong>
1 full year timely payments made. Trustee approved. No delinquencies. Detailed credit explanation.
<strong>Foreclosures/Deed in Lieu</strong>
Released at least 3 years and detailed credit explanation.</blockquote>
<blockquote><u><strong>VA</strong></u>
<strong>Bankruptcies
(Chapter 7)</strong>
Fully discharged at least 2 years. Schedule of debtors and discharge forms unless credit report provides discharge date. Credit re-established (with minimum 1-year history). No delinquent credit after bankruptcy. Detailed credit explanation.
<strong>(Chapter 13)</strong>
1 full year timely payments made. Trustee approved. No delinquencies or debts outside of bankruptcy. Detailed credit explanation.
<strong>Foreclosures/Deed in Lieu</strong>
Fully released 2-3 years. Detailed credit explanation.</blockquote>
Short sales follow Foreclosure guidelines.
The guidelines are effective as of February 1st, 2009.</em>
