By Glenn Roberts Fortunately, Seattle has not experienced the high number of short sales and foreclosures that the southern tier of states has. But if you know someone who is on the edge, here is some good information. These tables will tell you what the waiting period is, before you will once again be eligible for a Fannie Mae or Freddy Mac loan.
I'm not an attorney and this is not legal advice. Before you take one of these options be sure to consult with an attorney and probably an accountant. There is a lot more than a waiting period involved with these actions.
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| Bankruptcy (Chapter 7 or 11) | 4 years from discharge or dismissal date |
| Chapter 13 Bankruptcy | 2 years from discharge date or 4 years from discharge date |
| Exceptions for Extenuating Circumstances - all bankruptcy actions | 2 years from discharge or dismissal date. No exceptions permitted to the 2 year time period after a Chapter 13 discharge |
| Multiple Bankruptcy filings | 5 years from most recent discharge or dismissal date for borrowers with more than one bankruptcy filing within the past 7 years |
| Exceptions for Extenuating Circumstances - Multiple Bankruptcy filings | 3 years from most recent discharge or dismissal. Note: the most recent bankruptcy filing must have been the result of extenuating circumstances. |
| Foreclosure | 5 years from completion date Additional criteria apply after 5 years, up to 7 years following the completion date:
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| Exceptions for Extenuating Circumstances - foreclosure |
3 years from completion date
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| Deed-in-Lieu of Foreclosure |
2 years from date of completion, Max LTV 80% |
| Exceptions for Extenuating Circumstances - Deed-in-Lieu of foreclosure | 2 years from completion date, Max LTV 90% |
| Short Sale (Pre-foreclosure sale) | 2 years from completion date and Max LTV 80% 4 years from completion date and Max LTV 90% 7 years from completion, follow standard LTV chart |
| Exceptions for extenuatiing circumstances - Short Sale |
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This table is only a guide. Fannie Mae and Freddy Mac are constantly changing their guidelines. You're welcome to call Lake and Company and talk to one of our agents anytime, but always remember that before you decide on one of the above scenarios, talk to an attorney.
Carol Gabrielson
Jason Wall
Dan Goforth
Christiaan Bourdrez
Marjie Cunningham
Allen Jaworski
Diane Easley
Aune Tietz
Karissa Webster
Claire Zaner
Glenn Roberts
John "Mack" McCoy
Danny Adamson
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