A Fountain Hills foreclosure is a traumatic experience, however, it isn’t the end of the world, and you can buy another home. Here are some recent guidelines to buying a Fountain Hills home after foreclosure, short sale or bankruptcy.
Conventional
Chapter 7 Bankruptcy- 4 years from discharge date
Chapter 13 Bankruptcy- 2 years from discharge date
Foreclosure- 5 years from completion date (Mortgage included in Bankruptcy uses Foreclosure waiting periods)
Deed- In- Lieu of Foreclosure- 2 years from completion date with 20% down payment, after 4 years with 105 down payment
Short Sale-finacin 2 years from completion date with 20% down payment, after 4 years with a 10% down payment
FHA
Chapter 7 Bankruptcy- 2 years from discharge date
Chapter 13 Bankruptcy- 1 year of the payout must elapse and payment performance must be satisfactory. Also buyer must receive permission from the court to enter into mortgage
Foreclosure- 3 years from completion date (Mortgage included in Bankruptcy uses Foreclosure waiting periods)
Short Sale- FHA does not all a new mortgage immediately assuming the borrower never went late on the mortgage or any other debt for the 12 month period leading up the short sale (they also state that the borrower cannot use this rule to take advantage of declining market conditions to purchase a similar or superior home at a reduced price in the same geographic area). Many lenders do not follow the FHA rule and require a 3 year wait from completion date of the short sale regardless of no late payments. If the borrower went 30 days late prior to the short sale, the FHA requires a 3 year waiting period.
VA
Chapter 7 bankruptcy- 2 years from discharge date
Chapter 13 Bankruptcy- 1 year of the payout must elapse and payment must be satisfactory: buyer must receive permission from the court to enter into a mortgage
Foreclosure- 2 years from completion date (Mortgage included in Bankruptcy uses Foreclosure waiting periods)
Short Sale- No specific rule, assume foreclosure rule of 2 years
USDARural
Bankruptcy (Ch.7& 13) 3 years from discharge date
Foreclosure- 3 years from completion date (Mortgage included in Bankruptcy uses Foreclosure waiting periods)
Short Sale- no specific rule, assume foreclosure rule of 3 years.
