San Jose Real Estate Agent - San Jose, CA Market Conditions: How ...

HOW LONG DO BUYERS NEED TO WAIT UNTIL THEY CAN BUY A HOME - AFTER A FORECLOSURE, SHORT SALE, OR BANKRUPTCY.

Before you consider doing anything, speak to a professional CPA and attorney who specializes in these matters (Bankruptcy, Foreclosures, and Short Sales). Every situation is different and you should not rely on information in this blog or anywhere else to decide what do to.

According to Melanie Dickman of Princeton Capital, the lending guidelines are always changing on what is referred to as "seasoning" requirements or waiting time. Here is the information for those who have filed for bankruptcy, experienced a foreclosure, or sold their home short:

FHA
Bankruptcy - Chapter 13 - No seasoning
Bankruptcy - Chapter 7 - 2 years seasoning
Foreclosures & Short Sale - 3 years seasoning

Conventional
Bankruptcy - 4 years seasoning, 5 years seasoning for multiple bankruptcy filings

Foreclosure - 7 years

Additional requirements that apply after 3 years up to 7 years for foreclosure:

• Purchases must be a primary residence with a minimum 10% down payment (MAX 90% LTV). Purchase of a Second Home or Investment property is not permitted.


• Rate/Term, No Cash Out, Limited Cash-Out Refinances are permitted for all occupancy types.


• Cash-Out Refinances are not permitted for any occupancy type
  

Extenuating Circumstances - 3 years from the date of completion
Deed-in-lieu of foreclosure - 4 years seasoning
Short Sale - 2 years seasoning

Conventional loans with Mortgage Insurance

Bankruptcy - 4 years seasoning
Foreclosure - 4 or 5 years seasoning
From years 5-7: Primary only, max 90% Loan to Value (LTV), 680 score, Rate and Term refinance allowed. No second homes or cash out refinances allowed. Extenuating circumstances 3 years from date of completion.
Short Sale - 2, 4 or 5 years seasoning
Different mortgage insurance companies have different terms and parameters, Check with your company to verify what is applicable to your scenario.

Princeton Capital is a Residential Mortgage Lender, and an RMR Financial company, licensed by the California Department of Corporations under the California Residential Mortgage Lending Act, license#415-0027, the Oregon Division of Finance and Corporate Securities, license#ML-2847 and the Washington Department of Financial Institutions, license#520-CL-49008.

Source: http://sanjoserealestateagent.blogspot.com/2011/05/how-long-do-i-need-to-wait-until-i-can.html

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