For several years now homeowners who have filed bankruptcy, lost their home to foreclosure or sold their home in a “short sale” have asked, “when can I apply for a new mortgage?”
Fannie Mae and Freddie Mac have published their rules on bankruptcies and foreclosures for years. However, though they have had a category called pre-foreclosure sales there has not until recently been a category under “shortsale”.
In the most recent publication of rules and waiting periods, Fannie Mae and Freddie Mac have addressed this category as well. And, based on the new rules, it appears to be advantageous to consider the short sale over foreclosure, at least as it relates to a “waiting period” for reapplication.
However, in every consideration regarding financial hardships and the dispostion of a real estate property, it is advisable to obtain expert legal counsel from a real estate attorney who specializes in shortsales and foreclosure law. Following is a link to a “summary” of the new rules. Feel free to contact my office for further information.