When can I buy a home if I had a short sale or Deed-in-Lieu of Foreclosure?

Direct Link Realty

Fannie Guides:  Section B3-5.4-07  Significant Derogatory Credit Events – Waiting Periods and Re-establishing Credit (05/28/2013)

Note: The terms “pre-foreclosure sale” and “short sale” are used interchangeably in this

Guide and have the same meaning (see Deed-in-Lieu of Foreclosure and Pre-foreclosure Sale below).

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Deed-in-Lieu of Foreclosure and Pre-foreclosure Sale

These transaction types are completed as alternatives to foreclosure.

A deed-in-lieu of foreclosure is a transaction  in which the deed to the real property is transferred back to the servicer.

A pre-foreclosure 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.

The following waiting period requirements apply:

Exceptions for Extenuating Circumstances

 A two-year waiting period is permitted if extenuating circumstances can be documented, with maximum LTV, CLTV, or

HCLTV ratios of the lesser of 90% or…

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