Mnboy,

Yeah, Fannie and Freddie can be different. It's for that very reason that I've been using Freddie lately. Here are Fannie's guidelines directly from their seller's guide:

Bankruptcy (Chapter 7 or Chapter 11)

A four-year period is required to re-establish credit, measured from the discharge or dismissal date of the bankruptcy action.

Exceptions for Extenuating Circumstances

A two-year period is required to re-establish credit, measured from the discharge or dismissal date of the bankruptcy action.

Bankruptcy (Chapter 13)

A distinction is made between Chapter 13 bankruptcies that were discharged and those that were dismissed. The time period required to re-establish credit for Chapter 13 bankruptcy actions is measured as follows:

two years from the discharge date, or

four years from the dismissal date.

This policy recognizes that borrowers have reestablished credit through the successful completion of a Chapter 13 plan and subsequent discharge by requiring only a two-year time period to elapse.

A borrower who was unable to complete the Chapter 13 plan and received a dismissal will be held to a four-year time period for reestablishing credit.

Exceptions for Extenuating Circumstances

No exceptions are permitted to the two-year time period after a Chapter 13 discharge.

You can confirm this at the link below by clicking on allregs and then searching for foreclosure under the 2009 seller's guide. It seem CDPE needs to revise thier coursework.

I don't have the answer to the credit improvement riddle other than to say that it's different for each credit profile and there are rarely quick fixes. Most major credit surgery takes about a year from what I've seen of Armor and Lexington Law Firm. They are the only ones I've seen get results.

Your question of persuing banks and deficiency judgements is a whole other ball of wax. I recommend you start a separate post on that subject alone.

Charles,
Appreciate your input, I like to give out correct answers. If we give out good info, we might get off the bottom of the most respected list. CDPE is circulating(through classes) that Fannie Mae is 5 years after a foreclosure for a loan. You say Freddie is 3 years, can they be different? Can anyone answer about improving your credit score 2-300 points in that time frame. What would happen if banks and creditors pursue you? Deficiency judgement? It would appear we Realtors need to be using a lot of qualifiers.

Here's the exact language from FHA's underwriting guide (4155.1 REV-5):

A borrower whose previous principal residence or other real property was foreclosed or has given a deed-in-lieu of foreclosure within the previous three years is generally not eligible for a new FHA-insured mortgage. However, if the foreclosure was the result of documented extenuating circumstances that were beyond the control of the borrower and the borrower has re-established good credit since the foreclosure, the lender may grant an exception to the three-year requirement. Extenuating circumstances include serious illness or death of
a wage earner, but do not include the inability to sell the house because of a job transfer or relocation to another area.

Here's the exact language for VA:

The fact that a home loan foreclosure (or deed-in-lieu of foreclosure) exists in an applicant’s (or spouse’s) credit history does not in itself disqualify the loan.
 Develop complete information on the facts and circumstances of the
foreclosure.
 Apply the guidelines provided for bankruptcies filed under the straight liquidation and discharge provisions of the bankruptcy law. See the preceding heading entitled “Bankruptcy.”
If the foreclosure was on a VA loan, the applicant may not have full entitlement available for the new loan. Ensure that the applicant’s Certificate of Eligibility reflects sufficient entitlement to meet any secondary marketing requirements of the lender.

Freddie Mac requires the following:

Evidence on the credit report and other credit documentation that the Borrower has reestablished an acceptable credit reputation for at least the most recent:

• 36 months for a previous foreclosure

• 36 months after the discharge or dismissal of a bankruptcy when the Borrower has filed more than one bankruptcy petition in the past seven years

• 24 months after the discharge or dismissal of a bankruptcy, short payoff related to a delinquent mortgage obligation, deed-in lieu of foreclosure or other significant adverse or derogatory credit information

You'll also want a credit score over 620. Preferrably higher but there are still several investors at 620. Few are doing loans below that.

Good luck Philie!

I get mixed signals on this one, might be three year wait. Bankruptcy and the type will affect. As will circumstances. I would go ahead and try, next year will tougher. Rumors of interest hikes daily form Washington. Check your credit score, need 600+, you will need perfect bill paying. There are investors who will take a CD, I would avoid at all costs. You will likely pay a premium for the house. The rules change often. If information is 30 days old, it might be incorrect. If you get to the O.K. to buy stage, foreclosures are caused by financial problems, wrong house choice, location selection and/or a combination of the three. You do not want to repeat. Be sure to be totally up front, you do not want to go to underwriting 3 days before close and have it crash.

All of the advice from the agents thus far is good. Seeking help from a mortgage broker to check out your credit would probably be step one. If your financial situation was kept in order after the foreclosure, other bills have been paid, and you've been working on your credit, you may be able to finance a new home very soon!

The foreclosure will remain on your record for 7 years but that doesn't mean that you cannot purchase a house in that time. The foreclosure isn't the only thing that affects your credit. In addition to having a job which of course is essential, you have to have good credit in the time since.

It's best that you talk with a mortgage professional about what your possibilities are now and what steps you can take to make improve and strengthen your credit as quickly as possible.

All the best.

I would talk to a mortgage broker, it sounds like you are on the right track. They would be able to look at your credit and situation to see when you would be able to buy a home.

Benito gives you good advice. In addition to this option, I would also recommend:
- rent with option to purchase (which would need to be structured in writing up front)
- renting until you're ready to purchase (there are some GREAT rental deals out there)
- Contract for Deed (but this only works if you have 10% or so to put down on the home)
Steve

Hi, you need to get in contact with a Home Mortgage Consultant for an interview and pull credit report.
Your credit score and credit history after foreclosure will ve reviewed.
It is important to know when was the foreclosure.
Put toghether:
Tax returns 2007 and 2008
Last 4 paytubs
Last 3 bank statements

Buy!