Here is the most recent fnma underwriting guidline in reference to short sales and foreclosures.


https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf



Keith Manson
First Weber Group
Certified Distressed Property Expert
Greenfield,wisconsin

Here are the fnma underwritng guidlines if someone completes a short sale or is foreclosed on.
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf

If you recently lost your home to foreclosure, why did this happen? And most importantly how will you be able to pay a new mortgage if you could not pay the last one?

Are you seeking to significantly downsize from the last home?

Current Fannie Mae/Freddie Mac underwriting guidelines are that you cannot have such a loan for 5 years from the discharge date. Those are the current guidelines, as revised somewhat recently. They may be revised again, or maybe that's what they will always be. A conventional, confirming loan is one that can be sold to either Fannie Mae or Freddie Mac.

Hard money lenders can do whatever they want. They aren't planning to sell to Fannie/Freddie.

Sellers offering seller carrybacks can do whatever they want. The seller is acting as the bank, and sets the terms that suit them.

Bottom line, while the most affordable loan programs may be closed to you for quite some time, there are alternative loan programs (with significantly higher loan costs) that will be available to you, nearly immediately.

Disclaimer: This is a question for your legal counsel (attorney), tax advisor (accountant) and mortgage broker.

I really don't know. I have "heard" but not "verified" that if you have a foreclosure it could effect your ability to buy a home for 4 to 7 years. I have "heard" but not "verified" that if you do a short sale instead of foreclosure that you can buy a home after 2 to 3 years.

I would like an attorney, CPA, mortgage professional and possibly a credit expert (maybe even someone from the bureau) to give their opinion on this question too.