Fico is one thing... But there are SPECIFIC guidelines that relate to foreclosure... And there is no range in terms of timeline, these are very well established guidelines, and pretty cut and dry...
Again, Foreclosure is 7 years conventional, 3 years FHA, and 2 years VA... Meaning, you have to wait these time periods before you do these types of loans...
Obviously a foreclosure can affect your credit, but that is a whole different issue. The foreclosure guidelines are the ones that I stated above in this post, and below in the previous one...
If you were planning on going conventional, you would have to wait 7 years before buying a new home, or doing a new loan.
If FHA, its a 2 year waiting period, and if you are a veteran, VA will allow you to buy after 2 years...
If any agents, or anyone else for that matter wants a chart that shows the waiting times for VA, FHA, USDA, and Conventional with foreclosures, Chapter 7BK, Chapter 13 BK, and short sale, drop me an email and I will forward it over...
love to help you out. Best regards,
From what I gather, a short sale will affect your credit for 5 years, whereas a foreclosure hurts your credit score even more and for a longer period of time (7 years.) Having said that, if someone had a foreclosure and was able to turn things around, then I'm sure their chance of home ownership would increase dramatically. Unfortunately, there were a lot of distressed sales and it is a very large part of the market. Lenders and others who stand to benefit from home ownership levels remaining high will ultimately make adjustments and my feeling is that will open up some opportunities for those who experienced a foreclosure to buy a property again.
On the one hand, I think this could be a good thing, but on the other hand, if there are minimal repercussions from not making your payments, then how will this scenario prevent itself from repeating itself down the road.
Chad Basinger, REALTORÂ®, CPA, CFPÂ®