Bankruptcy & Foreclosure

CHAPTER 7

  • Conventional:  4-years
  • FHA & Ga Dream:  2-years since the discharge date
  • VA:  2-years
  • USDA:  3-years
  • Non-Traditional:  1-day

 

CHAPTER 13

  • Conventional:  2-years from discharge date or 4-years from dismissal date.
  • FHA & USDA:  1-year, with written permission from bankruptcy court to enter into the mortgage transaction.
  • VA:  1-year, if buyer has made at least 12 months of the payments on time and the Trustee or BK Judge approves the new credit.
  • Non-Traditional:  1-day

 

MULTIPLE BANKRUPTCY FILINGS

  • Conventional:  5 years if more than one filing within the past 7 years.

 

FORECLOSURE

  • Conventional:  7-years
  • FHA & USDA:  3-years from the date the title was transferred. Foreclosure rules apply even if the foreclosure was included in the bankruptcy.
  • VA:  2-years
  • Non-Traditional:  1-day

 

FORECLOSURE & BANKRUPTCY ON REPORT

  • The bankruptcy waiting period may be applied if the loan file includes documentation to verify that the mortgage was discharged in the bankruptcy.
  • If the BK was paying off the residual from a foreclosure started prior to the BK you must follow foreclosure waiting periods.

 

SHORT SALE

  • Conventional:  4-years
  • FHA & Ga Dream:  3-years
  • VA:  No seasoning requirements. Borrower to provide a letter of explanation.
  • USDA:  3-years
  • Non-Traditional:  1-day

 

DEED-IN-LIEU OF FORECLOSURE

  • Conventional:  4-years
  • FHA & Ga Dream:  3-years
  • VA:  2-years from the foreclosure date.
  • USDA:  3-years
  • Non-Traditional:  1-day


Above are General Guidelines...there are exceptions for extenuating circumstances