When you have a lower credit score, the mortgage rates that you are going to be eligible to receive are significantly higher. In fact, a derogatory event could end up reducing your credit score by upwards of 100 points. Just because you might be qualified for a loan through Fannie Mae, that doesn’t mean it is the best choice for your needs. Bankruptcies, deeds-in-lieu of foreclosure, pre-foreclosures, short sale and mortgage loan charge-offs are examples of significant derogatory events. The FHA Back to Work program allows you to apply for one of their loans in just one year versus what it used to be. Exploring the Rulesįannie Mae recently changed their mortgage rules for those who had a bankruptcy, short sale or pre-foreclosure on their record. Now, you could end up getting the loan you desire in just a couple of years, provided you do everything right. Just because you went through a foreclosure, that doesn’t mean you will have to wait years. In fact, you might be pleasantly surprised at how much different the lending guidelines are today in comparison to what they once were with lenders like Fannie Mae.
It used to be that once you had a foreclosure on your record, you were going to have to wait it out for quite some time to be able to get another home loan. With so many consequences of a foreclosure, it leaves many wondering what they are going to do to recover and get things going in the right direction.
Loss of relocation assistance that might have been available to you had you moved on your own. It could leave you with a deficiency, meaning you are stuck paying money to the mortgage company after they sell the home. – This could make it even more challenging to end up getting into a new home, obtain credit or even land the job of your dreams. Stress and having to face the uncertainty of not having a place to live. You could be Evicted from the property. Not only do you sacrifice your home, but you end up losing all of the equity that you once had built up in the property. If you do end up going through a foreclosure, it could cost you far more than you realize. If you ignore the notice, you aren’t going to leave yourself with a whole lot of options.įacing Foreclosure? Call us at 1-80 and see if you might be a candidate for a Short Sale! Consequences of Foreclosures Even if you received a foreclosure notice in the mail, you could work to correct the problem. Someone could avoid foreclosure by taking the right steps ahead of time. Foreclosure happens when you stop making payments on the loan and have otherwise defaulted on the terms of your mortgage. Essentially, they are repossessing the property. Guidelines Surrounding Derogatory Eventsįoreclosures are a type of legal process that occurs when your mortgage company ends up taking ownership of your home. Fannie Mae is working to help those with a history of poor credit get the loan they want in the shortest amount of time possible. That’s just a year longer than what the FHA minimum is, but it is a significant improvement from the previous four-year wait.Īnother thing to consider is that the mortgage guidelines are also loosening and allowing more individuals to have the chance to get approved for a mortgage. You can now apply just two years after filing for bankruptcy or going through a short sale. Fannie Mae guidelines on getting a Mortgage loan after foreclosure have reduced the amount of time it takes to get approved for a loan through them. In fact, it is now easier than ever before to get the mortgage of your dreams. Lori Ballen, the owner of this website, benefits from purchases made through her affiliate links.įederal Housing Administration, Top Ten Facts about FHA LoansIt used to be that you had to wait four years after going through a bankruptcy or short sale before you could attempt to get approved for a mortgage, but that isn’t the case any longer.
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