There are many loan options available to borrowers who have experienced short sale, deed-in-lieu of foreclosure, foreclosure or bankruptcy. Below is a summary of the current waiting periods.
* Multiple loan options are available. Specific eligibility criteria may apply depending on product chosen
**Property surrendered in a bankruptcy, is continued as a deed-in-lieu
Definitions Used in this Article:
Foreclosure- Property is repossessed when the borrower consistently fails to satisfy the loan obligations as agreed.
Short Sale- Lender agrees to accept payoff of less than amount owed in the mortgage once the property is sold.
Deed-in-Lieu of Foreclosure- Failing to satisfy the loan obligation, the borrower comes to an agreement with the lender to assign the mortgage title to the lender and avoid foreclosure proceedings.
Bankruptcy Chapter 7- Assets are liquidated and used to pay debts. Remaining bankruptcy debts are discharged.
Bankruptcy Chapter 13- Debts are paid back on a scheduled payment plan agreed upon and confirmed by the court.
Extenuating Circumstances- There are non-recurring events that are beyond the borrower’s control, that result in sudden, significant and prolonged reduction in income or catastrophic increase in financial obligations. Example of extenuating circumstances might include the serious illness or death of the primary wage earner. Divorce or the inability to sell the home because of a job transfer or relocation, does not qualify as an extenuating circumstance.