Financing in Merced>Question Details

Monica, Other/Just Looking in Merced, CA

can i get a loan if i have a forclosure in my credit score?

Asked by Monica, Merced, CA Sat Sep 11, 2010

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Steven Ornellas’ answer
Hi Monica, the answer is yes, provided you have addressed the damaged caused to your credit scores by the foreclosure, AND 7 years has passed, OR 3 years have passed if there were extenuating circumstances.

The most current Fannie Mae "Selling Guide", located at https://www.efanniemae.com/sf/guides/ssg/sg/pdf/sel081210.pdf indicates the following concerning foreclosures on page 423:

"Foreclosure

A seven-year waiting period is required, and is measured from the completion date of the foreclosure action as reported on the credit report or other foreclosure documents provided by the borrower.

Exceptions for Extenuating Circumstances

A three-year waiting period is permitted if extenuating circumstances can be documented, and is measured from the completion date of the foreclosure action. Additional requirements apply between three and seven years, which include:

• Maximum LTV ratios of the lesser of 90% or the maximum LTV ratios for the transaction per the Eligibility Matrix.
• The purchase of a principal residence is permitted.
• Limited cash-out refinances are permitted for all occupancy types pursuant to the eligibility requirements in effect at that time.
Note: The purchase of second homes or investment properties and cash-out refinances (any occupancy type) are not permitted until a seven-year waiting period has elapsed."

Best, Steve
1 vote Thank Flag Link Mon Sep 13, 2010
I've never heard of getting any loan a day after a foreclosure.. Best case 12 months with the Back to work program.
1 vote Thank Flag Link Wed Nov 13, 2013
Randy, if you would like me to put you in contact with a lender who will, just let me know.
Flag Wed Nov 13, 2013
You can. It's really important that you work on your credit while you wait for the 3 year seasoning period.

You must wait 3 years AND have a qualifying score. Here's some tips on how to improve your score during your seasoning period. I wrote this specifically for your situation.

http://www.keaneloans.com/2010/05/13/how-do-i-fix-my-credit-…
1 vote Thank Flag Link Mon Sep 13, 2010
Hi, Monica

Just to add to the good answers you've received so far, your 3 years starts not from the date of the sheriff sale, but from the date your redemption periods ended and the property official went back to the bank. In MI, our redemption period after the sheriff sale is 6 months.
1 vote Thank Flag Link Mon Sep 13, 2010
You need at least 3 years from the date of foreclosure to qualify for a loan. If you foreclosed on an FHA loan, you need to make sure you have 3 years from the date of the CAIVERS claim ( FHA claim)

Elena Ollick
Amerivest Realty
Faith Home Loans
239-206-4500
eo@oceanhomesrealty.com
http://www.andrewollick.com/realestateblog
1 vote Thank Flag Link Sun Sep 12, 2010
Monica it clearly depends on the length of time since the foreclosure an dif you rebuilt your credit. At this point your best bet is is to meet with a local and trusted mortgage broker, they can prequailify you at no cost, they will look at your credit plus your financials and let you know if there are any programs that you may quailify for. if you do not quailify now, they can assist you with tips on what you need to do and how long it will take

Please see my blog for tips and advice on getting a mortgage
1 vote Thank Flag Link Sun Sep 12, 2010
Yes, depending on a lot of different factors. Visit http://www.whywaitbuytoday.com and see if you qualify today.
0 votes Thank Flag Link Sun Nov 17, 2013
Monica,

There are lenders out there who will do loans the day after foreclosure. They will cost you more, but they are available. You do not need to wait 3 years! You will have to weigh out the costs and benefits. If you would like me to put you in contact with my lenders, just give me a call!

Joshua Metcalf, Broker
Del Mar Real Estate Group
209.628.5517
jmetcalf@delmarreg.com
BRE# 01720633
EXPERIENCE | HARD WORK | RESULTS
0 votes Thank Flag Link Wed Nov 13, 2013
I do a lot of short sales and have several clients with short sale or foreclosure on their credit. Yes, you can get a credit, but you need to wait 3,5 year. To qualify for a loan, you have to have a job and a fairly good credit score. At least 3.5% downpayment is required. Start working on improving your score as soon as you can. Make sure that the previous loans are not on your credit. Especially if you had a second loan. If your second loan was a recourse loan, you may still be responsible for it. Check your credit and contact a real estate attorney if you have questions. I can suggest one who specializes in foreclosures and really knows the details
0 votes Thank Flag Link Sat Sep 11, 2010
Monica,
Yes, but it will take some time after the foreclosure. Currently to qualify for Fannie/Freddie backed loans you 5 years to have past since your foreclosure to be considered. It's also important that your credit record be very clean and that you have saved up some down payment.
0 votes Thank Flag Link Sat Sep 11, 2010
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