Short Sale/Deed in Lieu of Foreclosure Waiting Period Changes

July 29, 2014

Fannie Mae has recently announced the waiting period requirements for borrowers who have had a previous deed-in-lieu of foreclosure or preforeclosure sale are being updated to now require a four-year waiting period; though a two-year waiting period will be permitted if the event was due to extenuating circumstances and the loan complies with all requirements specific to a deed-in-lieu of foreclosure or a preforeclosure sale due to extenuating circumstances, as specified in the Fannie Mae Selling Guide. The loan-to-value restrictions previously tied to different waiting period time-frames are also being removed. 

 

Short Sale/Deed in Lieu of Foreclosure

(Changes for applications taken on August 16, 2014 or later)

Waiting Periods Under
the Old Guideline
(On or before 8-15-2014)

Waiting Periods Under
the New Guideline
(On or after 8-16-2014)

 

7 years if the borrower puts <10% down
Recovery period must have elapsed prior to the date of the application.

 

4 years from the date the deed to the property was transferred back to the servicer. No LTV/CLTV limitations.

 

4 years if the borrower puts 10% down
Recovery period must have elapsed prior to the date of the application.

 

2 years if the borrower puts 20% down
Recovery period must have elapsed prior to the date of the application.

Please reload

Featured Posts

Proposition 13 has protected California home owners and taxpayers. While our sales and income taxes have increased and currently to be the highest in...

Proposition 13! What does it do for Californians- what we need to do about it?

March 5, 2014

1/3
Please reload

Recent Posts
Please reload

Search By Tags
Follow Us
  • Facebook Classic
  • Twitter Classic
  • Google Classic
  • Facebook App Icon
  • YouTube App Icon
  • LinkedIn App Icon
  • Blogger App Icon

Follow me on

NMLS ID: 248451

CalBRE 01225768

 

© 2017 HomeSmart/Evergreen Realty