how long do you have to wait after a foreclosure before qualifying for a new loan?

Asked by Saba1997, Illinois Sun Sep 11, 2011

We lost our home to foreclosure in Arizona in July 2009. We haven't filed for Bankruptcy and was wondering how long we need to wait before qualifying for another loan? ( In Arizona, it was a walk a way property, I didnt want to do it but was forced to and before I could buy it back it was sold at auction,. Help..

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5
Craig Bosse, Agent, Walnut Creek, CA
Tue Nov 26, 2013
Are you looking to buy again in Arizona? If so we have a loan that will work for you.

It's a portfolio loan unique to our bank. It allows you to buy again one day after short-sale or foreclosure. All you would need is a 660 minimum mid FICO score and 20% down payment.

You can contact me at the link below.

Thanks
0 votes
Terri Club, , Arizona
Sun Apr 21, 2013
I had a client who wanted to buy a home in Arizona, but he had a foreclosure. After researching the web I found a loan program at http://www.cfsflex.com, they allow a mortgage after a foreclosure. There is no waiting period. Good to see lending options coming back.
0 votes
Shane Milne, Mortgage Broker Or Lender, South Jordan, UT
Sun Sep 11, 2011
Foreclosure seasoning guidelines for the mainstream mortgage programs in use today:

• FHA & USDA require 3 years from the foreclosure sale date/when the home is no longer legally in your name (only 1 year if it was due to extenuating circumstances)
• VA requires 2 years from the foreclosure sale date/when the home is no longer legally in your name (only 1 year for extenuating circumstances)
• Fannie Mae & Freddie Mac require 7 years from the foreclosure sale date/when the home is no longer legally in your name (3 years if it was due to extenuating circumstances, 10% down)

Extenuating circumstances are nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.

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 you had open prior to the foreclosure, and you kept open, and never defaulted on, can count towards re-established credit.

What was the reason you went into foreclosure and how has your credit been since then?
0 votes
Suzanne Hami…, Agent, Orland Park, IL
Sun Sep 11, 2011
Most banks require 3 years for a foreclosure before loaning. My advice is to work on your credit score and get it up as high as possible. Work with a credit correction person to help your chances. That will impress a mortgage company, but make no mistake, it will take at least a year or two.
0 votes
Ron Thomas, Agent, Fresno, CA
Sun Sep 11, 2011
There is a lot of TALK out there;
the Grapevines says 2-3 years,
but that may depend on the new Lender.
0 votes
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