Time Heals Credit Wounds Too!

Tough times happen and the desire to own a home does not often go away with the loss of a home.  If you participated in a deed-in lieu or short sale transaction, be patient.  You will be able to purchase again.  Just be sure to maintain at least 2-3 credit lines with good payment history and save as much as you can.

Deed in Lieu of Foreclosure and Short Sales are transactions that are completed as alternatives to foreclosure. A deed-in-lieu of foreclosure is a transaction in which the deed to the real property is transferred back to the servicer.   A pre-foreclosure sale or short sale is the sale of a property in lieu of a foreclosure resulting in a payoff of less than the total amount owed, which was pre-approved by the servicer.

So how long do you have to wait before purchasing a new house? I gathered the information below from a local lender last month.

• 2 years out, you should be able to finance up to 80% along with a 2nd mortgage to 85%
• 4 years out, you can go to 90%
• 7 years out, you can qualify for all programs.  However, a two-year waiting period is permitted if extenuating circumstances can be documented

As always, feel free to contact me with questions.