Back to the Future: Mortgage Options Post BK, Foreclosure & Short Sale
In the year 2007. War is surging in Iraq. The iPhone is unveiled. Barry Bonds clocks 756 and people still choose to think it's the broccoli that's doing it. La Scala's walls will never again reverberate to Luciano's tenor and you foreclosed on your home. Fast forward to 2014 and you are again eligible for a conforming loan.
In the year 2009. Barack Obama is President. We hope the economy changes. Madoff's Ponzi "fin e' fatto." Michael Jackson checks into Neverland for good, but it's Chesley Sullenberger who ultimately proves you can walk on water. You either had a bankruptcy or foreclosure and you now need a jumbo mortgage. You're in business. Oh, wait, it wasn't just one BK, but multiple bankruptcies? You may now qualify for a conforming loan too.
In the year 2010. Wiki's leaking secrets like BP's leaking oil. Chilean copper miners strike golden sunshine after 70 days. Katy Perry's persistent presence in the Top 20 and puts a lot of ears in the Hurt Locker. You had a Chapter 7 bankruptcy or a short sale, but you may now be eligible to get a conforming home loan, up to 90% of the property's value.
In the year 2011. An Arab Spring is rising, a Euro Zone is sinking. Everything else is Occupy'd. William and Kate marry as if nothing ever happened. "Sic semper tyrannis," Osama. Did the Cardinals really win the World Series if nobody saw it happen? If you short sold you might now qualify for a jumbo loan. And if you're below jumbo limits, maybe an FHA program will work for either your foreclosure or short sale.
In the year 2012. Wait, how is this two years ago already? Fiscal Cliffhanging. The SCOTA upholds ACA. Neil Armstrong slips the surly bonds to touch the face of God, and my wife and I welcome our first, Robert Orion. If you experienced a short sale you may be able to get back in the market with 20% down (conforming). If you had a Chapter 7 bankruptcy, perhaps FHA is an option for you now. And if you had a Chapter 13 BK? A conforming mortgage might fit here too.
It's only last year, for heaven's sake. If you don't remember what happened your memory is worse than mine. But if just one year of your Chapter 13's payout period has elapsed, FHA is an option. And I know you've heard that short sales may also work, but the hurdles here are quite high so call if you have questions about dipping your toe into these waters.
Not you, Sully, we know you can swim.
Hopefully, a little humor goes a long way to helping with an understanding of the waiting periods required after bankruptcy, foreclosure and short sales. The timeline above might paint a clearer picture if you've been asking yourself "How long do I need to wait to get a mortgage (happily ever) after..."
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