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NEW HOPE
EASTLAKE | CHULA VISTA | SAN DIEGO
Real Estate
Is the idea of buying a home just a dream? Or maybe your family needs a bigger home, is that possible? Buying a home is not easy, but it is possible. With time and discipline buying a home can be a realistic dream and goal for you. This section will help you understand the home buying process.
Credit Repair after Short Sale and Foreclosures, What Lenders Look For
Among homebuyers actively looking to make a purchase, are an increased number of purchasers that have experienced a past short sale or foreclosure. Targeting these buyers are credit repair companies and law firms that claim & often succeed in removing a short sale or foreclosures for a fee. A clear credit report is only a part of the financing requirement. Buyers must state on their loan application under Federal Fraud statutes, if they have had a foreclosure or previously owned a property. Having a short sale or foreclosure is a loan eligibility issue, so lenders must document this event in the loan file. Since loans are now reviewed after closing by the investors, if it is discovered the information in the file is incorrect, the investor can require the lender to repurchase the loan. As a result, the lender must be thorough and accurate in their processing of the loan.
Here are some reminders of typical wait times:
Waiting time after a foreclosure:
VA: 2 years
FHA: 3 years /1 year Extenuating Circumstances
Conventional: 7 years
After a short sale:
VA: 2 years
FHA: 3 years / 1 Year Extenuating Circumstances
Conventional: 4 years / 2 Years Extenuating Circumstances
Bottom line; if there was a previous short sale or foreclosure in the history of a
new buyer, providing accurate information to the lender up front will help avoid a
surprise or disappointment later.
FINANCIAL STEPS
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Disclaimer: Please note that the resources listed by New Hope Community Church are not to be substituted for professional recommendations by your financial planner, real estate agent, loan officer, or other professional. New Hope Community Church is not responsible for the outcomes of the articles, videos, or ideas provided.