My New Outside Blog

They're Back!!!   There's a steady stream of potential home buyers that are back... and more to follow.  Can you guess who they are?  Many of those homeowners from a few short years ago with a short sale, bankruptcy, or foreclosure are ready to purchase, again! 

Just because these prior homeowners have had a short sale, bankruptcy, or foreclosure doesn't mean they can't purchase a home ever again.  Quite the contrary. Believe it or not these are now viable home buyers and are ready to achieve the dream of home ownership for the second time. 

If we look back to 2007 when the housing troubles began we'll see a mass of potential buyers, many of whom are ready to receive financing again.  Not all will be viable borrowers today, but if they have regained control over their credit and have waited the required time-frame for the specific type of home financing then they now may be ripe to jump right back into the housing market.

Here are some of the timelines to note for Conventional, FHA and VA financing if a short sale, bankruptcy, or foreclosure is in the recent past:

CONVENTIONAL FINANCING

• Chapter 7 Bankruptcy:    Wait period of 4 years from discharge of bankruptcy
• Chapter 13 Bankruptcy:  Wait period of 2 years from discharge of bankruptcy
• Foreclosure:    Wait period of 7 years from completion date
• Short-Sale:    Wait period of 2 years from completion date

FHA FINANCING

• Chapter 7 Bankruptcy:    Wait period of 2 years from discharge date
• Chapter 13 Bankruptcy:    Wait period of 1 year from the payout date must elapse & performace of payments must be satisfactory.  The borrower must receive permission from the court to enter into a mortgage
• Foreclosure:    Wait period of 3 years from completion date
• Short-Sale:    Wait period of 1 year from completion date as long as at the time of the short-sale the borrower was current on the mortgage and all installment loans for the 12 month priod prior; wait period of 3 years from completion date if the borrower was in default at time of short-sale

VA FINANCING

• Chapter 7 Bankruptcy:    Wait period of 2 years from discharge date
• Chapter 13 bankruptcy:    Wait period of 1 year from the payout date must elapse & performance of payment myst be satisfactory.  The borrower must receive permission from the court to enter into a mortgage
• Foreclosure:    Wait period of 2 years from completion date
• Short-Sale:    Wait period of 2 years from completion date

Please also note that you may likely be involved with a seller who is presently experiencing a bankruptcy or short-sale.  If that is the case then here's a tip...  If you truly care about them then stay in touch and help where you can through these tough times.   If you genuinely care about their well being then they may very well likely return as a viable home buyer someday.