Home Buying in Lomita>Question Details

Lightbulb55, Home Buyer in Lomita, CA

after a foreclosure deed in lieu how long do you have to wait before purchasing another property? My credit score is 764.

Asked by Lightbulb55, Lomita, CA Thu Oct 20, 2011

Three lines of credit that we pay on time monthly. Also we are concidering moving to Utah, would the time frame be the same state to state?

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After a deed-in-lieu of foreclosure (which is different than a foreclosure):

• FHA & USDA require 3 years from the deed in lieu (only 1 year if it was due to extenuating circumstances)
• VA requires 2 years from the deed in lieu (only 1 year for extenuating circumstances)
• Fannie Mae & Freddie Mac require 2 years from the deed in lieu with 20% down (just 10% down if due to extenuating circumstances), or 4 years with 10% down regardless of the reason and then at 7 years maximum financing is permitted (which currently is 97%).

In all situations you need at least 12 months of re-established credit and 3 traditional trade lines, some lenders want 3 trade lines of 12 months each. Trade lines that survived the deed in lieu, such as a credit card you kept open, a car loan you maintained payments on, etc. can count towards the re-established credit.

The guidelines are the same regardless of where you are buying. There are what are called "portfolio" lenders, which make guidelines which do not have to conform to the above programs, and portfolio lenders will vary state to state, but they all have deed-in-lieu seasoning guidelines just as long and in majority of situations even longer.

At one point there were sub-prime mortgage lenders who would allow a purchase 1 day after a foreclosure or deed in lieu if you had a 10% down payment, etc. but sub-prime lenders really don't exist anymore, now they are basically hard/private money lenders.

Are you also Woodfloor34 in Utah because I answered a very similar question there too.
2 votes Thank Flag Link Thu Oct 20, 2011
Time frames for getting another loan vary based on lender guidelines. You should consult with a good loan officer. If you need a referral go to my profile and send me a message.

Good Luck
2 votes Thank Flag Link Thu Oct 20, 2011
Hi Lightbulb,

The guidelines are standard state to state.

The answer are the following:

*Conventional 7 yrs
*FHA 3 yrs
*VA 2 yrs
*USDA 3 yrs
Web Reference: http://tedcanto.com
1 vote Thank Flag Link Thu Oct 20, 2011
As is typical, Shane has the answers pretty well lined out for you - Hope things worked out for you.
0 votes Thank Flag Link Tue Apr 30, 2013
Hello Lightbulb55,

I would love to hear your story about why you decided to do a deed in lieu vs. doing a short sale on your home. Please email me. Don't worry, I'm not going to judge you or anything, but it's difficult to get in touch with previous owners who have chosen this option & I'm interested in your experience. You don't have to go into great detail about numbers & you don't have to give me any personal info.

I won't look back on this same Trulia thread for answers posted after mine.

EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Main Street Realtors
0 votes Thank Flag Link Thu Oct 20, 2011
For me its was simple. In 2008 I received military orders to move. I tried Short Sale and found a buyer, but BOA failed to act and the sale caved. No other buyers would offer the price BOA. I tried renting and cycled through 3 renters in 18 months. They all bailed. I used a property management company as well, but that was of little use. The rental market in Ruskin, FL was $600 a month under the payment. I was sinking and BOA offered no other options. I was approved for DIL and dumped it. I don't regret not dropping every extra cent in a losing deal. BOA was retarded and now they are still the owners of home gone south in a nice neighborhood. Starting price $197K. I doubt it will sell for more than $90K now. Its shocking. I'll never use BOA or live in FL again.
Flag Mon Jul 2, 2012
It sounds like Shane has the knowledge you are looking for. My preferred lender has assured me that one year seasoning is possible under the right circumstances.
0 votes Thank Flag Link Thu Oct 20, 2011
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