Your Past Doesn't Have To Get In The Way of Your Future

The financial challenges of the past don't have get in the way of your future. If you had a bankruptcy, foreclosure or short sale in the last few years, you are not alone.

There were OVER 7.7 million foreclosures between 2007 and 2016** There were OVER 5.1 million bankruptcies between 2012 and 2016** You get the idea right?

What a bankruptcy, foreclosure or short sale means to your future.

Below is a chart giving you an overview of the mandatory waiting periods for each major credit event based on each loan program type. (click on each tab to see the results)

Bankruptcy

Short Sale

Foreclosure

	Conventional	FHA	USDA	VA
Chapter 7	4 years from discharge date	2 years from discharge date	2 years from discharge date	2 years from discharge date
Chapter 13	2 years from discharge date or 4 years from dismissal	1 year from discharge date or after 12 months of payout payments*	1 year from discharge date or after 12 months of payout payments*	1 year from discharge date or after 12 months of payout payments*

*requires court approval if bankruptcy is not discharged

Conventional	FHA	USDA	VA
4 years	3 years	3 years	2 years unless there are extenuating circumstances

Conventional	FHA	USDA	VA
7 years	3 years from the date of trustees deed	3 years from the date of trustees deed	2 years from recording of trustee deed

Keep it clean if a home is in your future.

Keeping a clean credit and payment history after a major derogatory event is very important. You need to demonstrate that you learned from past experiences and that you are doing whatever you can to avoid the situation in the future.

So there you have it. A quick look at how major credit events can affect your future.

If you have any questions on this topic or any other mortgage-related topic, by all means reach out to me.
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**Sources
Number of foreclosures: https://www.corelogic.com/research/foreclosure-report/national-foreclosure-report-10-year.pdf
Number of bankruptcies: http://www.uscourts.gov/news/2016/07/27/june-2016-bankruptcy-filings-down-69-percent
NOTICE:
The waiting periods are based on typical situations. Meeting the waiting periods does not guarantee that you can qualify for a loan. This is not an offer for extension of 
credit or a commitment to lend. This ad is not from HUD, VA, or FHA and was not reviewed or approved by any government agencies.

Your Past Doesn’t Have To Get In The Way of Your Future