Table of Contents
What is Fannie Mae guidelines for foreclosure?
Summary — All Waiting Period Requirements
| Derogatory Event | Waiting Period Requirements |
|---|---|
| Multiple Bankruptcy Filings | 5 years if more than one filing within the past 7 years |
| Foreclosure1 | 7 years |
| Deed-in-Lieu of Foreclosure, Preforeclosure Sale, or Charge-Off of Mortgage Account | 4 years |
Can you get a Fannie Mae loan with a foreclosure?
To be eligible for a mortgage loan, Fannie Mae requires borrowers to demonstrate that they have re-established credit following a significant derogatory credit event, such as a foreclosure, bankruptcy, preforeclosure sale (commonly known as a short sale), or deed-in-lieu (DIL) of foreclosure.
What is the Fannie Mae waiting period after foreclosure?
The Fannie Mae general foreclosure waiting period is 7 years from deed transfer. But, there are exceptions for documented extenuating circumstances. If there are extenuating circumstances and between 3 – 7 years from foreclosure date, there are additional guidelines.
How does Fannie Mae refer to short sales in its selling guide for lenders?
Fannie Mae has its own set of guidelines regulating short sales of properties in which it holds the mortgage paper. In a short sale, a home sells for less than the amount owed the lender. Often, a short sale can avert foreclosure by the lender, which is usually going to write off the difference once it’s sold.
What are the seasoning requirements for a prior foreclosure?
Foreclosures. A 7 year waiting period is required before conventional financing is available. Exceptions can be made for a 3 year waiting period if extenuating circumstances can be documented AND the CLTV is (at or below) 90% and the loan is to purchase a primary residence.
What is Freddie Mac waiting period after foreclosure?
There’s a seven-year waiting period after a foreclosure with a conventional conforming loan for both Fannie Mae or Freddie Mac backed loans. Both allow for a lesser waiting period with applicable, documented extenuating circumstances, though.
What does Fannie Mae call a short sale?
A short sale is the sale of a home for less than the balance remaining on your mortgage. If your mortgage company agrees to a short sale, you can sell your home and pay off all (or a portion of) your mortgage balance with the proceeds and avoid foreclosure.
What is the seasoning requirements for Fannie Mae?
The borrower has not had a 30-day delinquency in the 12-month period that precedes the lender’s delivery of the loan to Fannie Mae. If the current borrower assumed the loan and has owned the property for less than 12 months, he or she must have had no 30-day delinquency since purchasing the property.
How long do funds need to be seasoned?
Basically, seasoned funds are funds that have been in your bank account for at least the last 60 days. “Seasoning” funds is easy. You just get your money together, stick it in a bank account (a separate account for your down payment is often preferable), and wait 60 days before you apply for a loan.
How hard is it to buy a Fannie Mae HomePath property?
How do you qualify for a Fannie Mae HomePath property? In order to qualify for a HomePath home with the 3% down payment and matching closing cost assistance, you can’t have owned a house within the last 3 years and you’re required to use the property within 60 days after closing as your primary residence.
Does Fannie Mae negotiate on foreclosures?
Through HomePath.com, Fannie Mae sells homes they own that have gone into foreclosure. You can negotiate a Fannie Mae home by making an offer, but as with any home purchase contract, you may lose out to someone who is willing to pay more.
What is the process of a short sale?
For a regular home sale, the seller would use the proceeds to pay off the original loan. In a short sale, the home sells for less than the seller owes, so the lender won’t get all their money back. As a result, the original lender must agree to the sale. The seller must prove they have no other option.
Can you cover shorts after hours?
There are no set rules regarding how long a short sale can last before being closed out. The lender of the shorted shares can request that the shares be returned by the investor at any time, with minimal notice, but this rarely happens in practice so long as the short seller keeps paying their margin interest.
Which of the following properties is ineligible according the Fannie Mae guidelines?
Houseboats, boat slips, cabanas, timeshares, and other forms of property that are not real estate are not eligible for delivery to Fannie Mae.
Where can I get additional questions about Fannie Mae foreclosure information?
If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources. You can also download the printable 1,200+ page PDF, which include links. What is the required waiting period for a foreclosure?
Where can I find information about Fannie Mae products?
For best results, pose your search like a question. For a comprehensive list of resources such as forms, announcements, lender letters, notices and more. If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources.
What is a pre foreclosure sale on a credit report?
A preforeclosure sale or short sale is the sale of a property in lieu of a foreclosure resulting in a payoff of less than the total amount owed, which was pre-approved by the servicer. These are typically identified on the credit report through Remarks Codes such as “Settled for less than full balance.”
What documentation do I need to file for a foreclosure?
The documentation must establish the completion date of a previous foreclosure, deed-in-lieu or preforeclosure sale, or date of the charge-off of a mortgage account; confirm the bankruptcy discharge or dismissal date; and identify debts that were not satisfied by the bankruptcy.