How Long Must I Wait?

How long must I wait before obtaining financing after bankruptcy, foreclosure or short sale? This is a question asked more and more due to the financial changes and hardships that many have faced in recent years. I have provided the following chart to help answer those questions.  (You can download a printable PDF copy here.)

Don-Parsons-Commerce-How-Lo

 

Very Important Information for Anyone Who Has Had a Short Sale

During the weekend of August 16, 2014, Fannie Mae will update Desktop Underwriter® (DU®) Version 9.1 with yet another change:

Short Sales (Deed-in-lieu of Foreclosure and Pre-foreclosure Sale):

warning-sign200The waiting period requirements for borrowers who have had a previous deed-in-lieu of foreclosure or preforeclosure sale (Short Sale) are being updated to now require a four-year waiting period. Only this last year it was updated to allow for only a two-year period. Now, Fannie Mae is changing it back again to a four-year waiting period. Please pass the word…

If you know of anyone with a short sale in the last few years, have them call me or e-mail me immediately to get a purchase or refinance started BEFORE THE AUGUST 16 WEEKEND. Many banks have implemented this pre-maturely. We are allowing two year period until Aug. 16 weekend!

OTHER REASONS TO RESTRUCTURE/REFINANCE YOU EXISTING MORTGAGE:

  • Take Cash-out to make Home Improvements or for Down Payment on a new 2nd Home or Investment
  • Payoff a 2nd OR Heloc, especially those set to adjust soon
  • Refinance out of FHA Loans into Conventional (possibly without MI, or a more favorable PMI policy)
  • Borrower’s that went FHA due to credit seasoning, now eligible for conventional loan
  • VA Loans – We have VA Cash-out Refinance available to 100% LTV!
  • 62 and over, consider a Reverse Mortgage to Live in Home Without Mortgage Payments

**Pre-Approvals (professional courtesy for my clients and those they refer) are positively required before you shop for a new home, a second home or investment property. Higher values are being created by low rates and a shortage of inventory and cash offers are very common now.

**Reverse Mortgage Changes – …and more to come. These products are becoming more and more challenging to tap equity for those 62 and over. But the first week of August there are some positive changes that will roll back the tightest equity restrictions of a year ago to become slightly more tolerable. i.e. access to a little more equity by seniors on this product. Caution: A skilled consultation is a requirement for anyone you love or care about before a person enters into any reverse mortgage transaction, whether purchase or refinance.

**HOME VALUES are definitely higher, many areas as high as 2007 values, and are allowing many folks to refinance who were formerly under water. Even if there is not 20% equity we need to do a careful review of how limited equity and partial mortgage insurance might still make a huge impact by refinancing. Many are consolidating debt with the low interest rate environment.

and remember… with today’s continued volatility and sharp swings in the market, new Federal regulations and guidelines, trusted market knowledge and EXPERIENCE is as important as price in your mortgage decisions. If you have any questions or concerns, please contact me.

Don Parsons
Certified Mortgage Planner & Consultant
CMP, CMPS, RMA, CLA
Commerce | Mortgage

450 Newport Center Drive Suite 350
Newport Beach, CA 92660
Direct: 949.428.3099
eFax: 949.423.6818
don@donparsons.com
dparsons@commercemtg.com
www.donparsons.com

NMLS #287222
Arizona Licensed also #0927145