HOW LONG DO I HAVE TO WAIT TO BUY A HOME IN WESTCHESTER AFTER BANKRUPTCY FORECLOSURE OR SHORT SALE

HOW LONG DO I HAVE TO WAIT TO BUY A HOME IN WESTCHESTER AFTER BANKRUPTCY FORECLOSURE OR SHORT SALE

HOW LONG DO I HAVE TO WAIT TO BUY A HOME IN WESTCHESTER AFTER BANKRUPTCY, FORECLOSURE OR SHORT SALE?

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Carey Hollander

June 4, 2015


I am frequently asked “Can you get another home or get a new mortgage if you had a bankruptcy, a foreclosure or short sale?” The answer is “Yes!” depending on a number of factors.  There are specific waiting periods before one can become eligible to obtain a mortgage but many people are unaware of what those exact waiting periods are after a significant negative credit event (“derogatory credit event”) like a bankruptcy or foreclosure.   Below is a list that highlights the waiting periods for the various credit events as well as what are considered “extenuating circumstances”.


Conventional Loan Waiting Periods: 

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*Source: -FANNIE MAE 


FHA Waiting Periods **    

Derogatory Event

Waiting Period Requirements

Waiting period w/ Extenuating Circumstances




Bankruptcy: Chapter 7 or 11

2 years

1 year

Bankruptcy: Chapter 13

1 year

1 year

Foreclosure

3 years

1 year

Deed-in-Lieu of Foreclosure/Pre-Foreclosure Sale / Charge off of Mortgage Account

3 years

NO WAITING PERIOD IF the mortgage was NOT in default and all other debts were paid on time otherwise:

1 year

**Source: FEDERAL HOUSING AUTHORITY (FHA)


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.  Types of extenuating circumstances are divorce, loss of job, major illness, death of your spouse, or natural catastrophe.


In all cases, the borrower needs to show they were able to re-establish their credit (3 new trade lines) and demonstrate responsible usage of credit.  The bottom line is that there is hope for those who have experienced a negative credit event and they can become homeowners again.


Carey is a 23 year veteran of the Banking industry and can be reached at  914.600.7102 or chollander@websterbank.com


Carey Lance Hollander

Sales Manager / AVP

Webster Bank

NMLS # 74044


J. Philip Faranda Headshot
Author:
Phone: 914-450-8883
Dated: June 4th 2015
Views: 1,834
About J. Philip: J. Philip Faranda is broker and owner of J. Philip Real Estate in Briarcliff Manor, NY, which he fou...

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