Nashville Brentwood Franklin Nolensville Spring Hill Murfreesboro Smyrna LaVergne Antioch Hermitage Short Sales and Foreclosures

Waiting Periods to Buy a Home After Foreclosure, Deed-in-Lieu, Short Sale and Bankruptcy

Jim McCormack - Real Estate Expert — Wed, 02 May 2012 18:00:57 +0000

Waiting Periods to Buy a Home After Foreclosure, Deed-in-Lieu, Short Sale and Bankruptcy
Buying a Home and Getting a Mortgage Loan After Foreclosure, Deed-in-Lieu, Short Sale and Bankruptcy
(Updated 5/2/2012)

Many financially distressed homeowners who are facing foreclosure and considering a deed-in-lieu of foreclosure, short sale or even bankruptcy have asked me how long they will need to wait to buy a home after foreclosure, short sale or bankruptcy. Since the answers are found in multiple places, I decided to compile a complete list and cross reference them for accuracy. In order to accomplish that task and compile the Waiting Periods to Buy a Home After Foreclosure, Deed-in-Lieu, Short Sale and Bankruptcy below, I utilized the following sources:

Waiting Periods to Buy a Home After Foreclosure, Deed-in-Lieu, Short Sale and Bankruptcy

Federal Housing Administration (FHA) Insured Loan
FHA Extenuating Circumstances: “Serious illness or death of a wage earner. Divorce and the inability to sell a property due to a job transfer or relocation does not qualify as an acceptable extenuating circumstance.”

Foreclosure – 3 years from the date foreclosure completed and property transferred back to the bank. Less than 2 years, but not less than 12 months from the date foreclosure completed and property transferred back to the bank may be possible with acceptable ”extenuating circumstances”.
Deed-in Lieu – Same as Foreclosure.
Short Sale – 3 years from the date sale closed and transferred to the new owner. No waiting period if seller/borrower had no late payments on any mortgages and consumer debts within the 12 month period preceding the short sale AND seller/borrower was not taking advantage of declining market conditions.
Bankruptcy (Chapter 7) – 2 years from date of bankruptcy discharge with re-established credit paid as agreed or no new credit obligations incurred. Less than 2 years, but not less than 12 months from the date of bankruptcy discharge may be possible with acceptable ”extenuating circumstances” AND borrower has since exhibited a documented ability to manage financial affairs in a responsible manner.
Bankruptcy (Chapter 13) – 1 year from the start date of the bankruptcy re-payment period has elapsed and the borrower’s payment performance has been satisfactory and all required payments made on time.

Veterans Administration (VA) Guaranteed Loan
VA Extenuating Circumstances: “Unemployment, prolonged strikes medical bills not covered by insurance, etc. Divorce is not viewed as beyond the control of the borrower and/or spouse.”

Foreclosure – 2 years from the date foreclosure completed and property transferred back to the bank. Less than 2 years, but not less than 12 months from the date foreclosure completed and property transferred back to the bank may be possible if credit re-established and paid as agreed and with acceptable ”extenuating circumstances”.
Deed-in Lieu – Same as Foreclosure.
Short Sale - 2 years from the date sale closed and transferred to the new owner. No waiting period if seller/borrower had no late payments on any mortgages and consumer debts within the 12 month period preceding the short sale AND seller/borrower was not taking advantage of declining market conditions.
Bankruptcy (Chapter 7) – 2 years from date of bankruptcy discharge. Less than 2 years, but not less than 12 months from the date of bankruptcy discharge may be possible if credit re-established and paid as agreed and with acceptable ”extenuating circumstances”.
Bankruptcy (Chapter 13) – 1 year from the start date of the bankruptcy re-payment period has elapsed and the borrower’s payment performance has been satisfactory and all required payments made on time.

United States Department of Agriculture (USDA) Rural Housing Loan
USDA Extenuating Circumstances: “Loss of job; delay or reduction in government benefits or other loss of income; increased expenses due to illness, death, etc. Circumstances surrounding the adverse information must have been temporary in nature, and beyond the applicant’s control, and have been removed so their reoccurrence is unlikely or the adverse action or delinquency was the result of a refusal to make full payment because of defective goods or services or as a result of some other justifiable dispute relating to the goods or services purchased or contracted for.”

Foreclosure - 3 years from the date foreclosure completed and property transferred back to the bank. Less than 3 years from the date foreclosure completed and property transferred back to the bank may be possible with acceptable ”extenuating circumstances”.
Deed-in Lieu – Same as Foreclosure.
Short Sale – Same as Foreclosure.
Bankruptcy (Chapter 7 or 11) - 3 years from date of bankruptcy discharge. Less than 3 years from the date of bankruptcy discharge may be possible with acceptable ”extenuating circumstances”.
Bankruptcy (Chapter 13) - 1 year from date repayment was completed and bankruptcy discharge. Less than 1 year from the date of bankruptcy discharge may be possible with acceptable ”extenuating circumstances”.

Conventional Conforming Mortgage Loan (meets Fannie Mae (FNMA) and Freddie Mac (FHLMC) Loan Purchasing Guidelines)
Conventional Extenuating Circumstances: “Nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.”

Foreclosure – 7 years from the date foreclosure completed and property transferred back to the bank if there are no acceptable “extenuating circumstances”. 3 years from the date foreclosure completed and property transferred back to the bank with acceptable “extenuating circumstances” AND at least 10% Down Payment. Primary home purchase and rate/term refinance only (non-owner occupied and second homes not allowed).
Deed-in Lieu - 7 years from the date sale closed and transferred to the new owner or foreclosure completed and property transferred back to the bank with less than 10% Down Payment. 4 years from the date sale closed and transferred to the new owner or foreclosure completed and property transferred back to the bank with 10% Down Payment. 2 years from the date sale closed and transferred to the new owner or foreclosure completed and property transferred back to the bank with 20% Down Payment. 2 years from the date sale closed and transferred to the new owner or foreclosure completed and property transferred back to the bank with 10% Down Payment and acceptable “extenuating circumstances”.
Short Sale – Same as Deed-in Lieu.
Bankruptcy (Chapter 7 or 11) – 4 years from date of bankruptcy discharge. 2 years from the date of bankruptcy discharge may be possible with acceptable ”extenuating circumstances”.
Bankruptcy (Chapter 13) - 2 years from date of bankruptcy discharge. 4 years from date of bankruptcy dismissal.

As you can see by the information above and the lesser credit damage caused by a short sale (versus a deed-in-lieu, foreclosure or bankruptcy), a short sale is generally the best option for a financially distressed homeowner who is facing foreclosure or who cannot afford to pay their mortgage. You should contact a foreclosure defense and/or bankruptcy attorney, a short sale real estate specialist like myself, or a legitimate mortgage loan counselor to evaluate all of your options. Please just do not let the bank foreclose on you without trying to prevent foreclosure. If you have a mortgage loan with Wells Fargo, Bank of America (BAC Home Loans or Countrywide Mortgage), CitiMortgage, Chase (JPMorgan Chase), America’s Servicing Company (ASC), GMAC, a Fannie Mae owned loan, a Freddie Mac owned loan, an FHA insured mortgage loan, a THDA mortgage loan, or any type mortgage loan, and you have missed mortgage payments, or will miss mortgage payments and live in the Nashville Tennessee area (Nashville, Brentwood, Franklin, Nolensville, Spring Hill, Thompson’s Station, Murfreesboro, Smyrna, LaVergne, Antioch, Columbia, Mt. Juliet, Springfield, Gallatin, Hermitage and Hendersonville), please contact Nashville Tennessee Short Sales and Foreclosures Expert for a free no obligation consultation to discuss your foreclosure prevention options including a short sale or short sales (if you have multiple properties).

______________________________________________

Jim McCormack is a Nashville Real Estate Broker who provides Expert Real Estate Solutions for for Nashville, Brentwood, Franklin, Nolensville, Spring Hill, Thompson’s Station, Murfreesboro, Smyrna, LaVergne (La Vergne), Antioch, Columbia, Mt. Juliet (Mount Juliet), Springfield, Gallatin, Hermitage, Hendersonville, Clarksville and Middle Tennessee (Davidson, Maury, Montgomery, Robertson, Rutherford, Sumner, Williamson and Wilson Counties) Homeowners and Real Estate Investors Facing Foreclosure and Needing to Short Sell Their Homes and/or Investment Properties. Jim Specializes in Short Sales and Foreclosures and Providing Sellers Short Sale Help and Foreclosure Help. Jim’s Help is Free to Nashville TN Short Sale Sellers. Jim Helps Sellers Stop Bank and Mortgage Foreclosure with a Short Sale, or a Fast Cash Offer. Avoid Foreclosure by Working Directly with a Nashville Tennessee Real Estate Expert and Investor who is Uniquely Skilled, Honest, Compassionate, Caring and Exceptionally responsive to the needs of his clients. Jim Encourages You to See What His Clients Say About Him. For Buyers, Jim understands the Various Nashville Tennessee Housing and Investment Real Estate Markets Extremely Well and is Particularly Skilled at Assisting Buyers with Determining the Market Values of Homes and Investment Properties. Due to that Real Estate Valuation Expertise, Jim can Help Nashville Home and Investment Property Buyers Get Fantastic Deals on Their Nashville Area Real Estate Purchases.

Murfreesboro TN Weston Park Green Planet Servicing & Fifth Third Bank Short Sale Closing

Jim McCormack - Real Estate Expert — Tue, 01 May 2012 22:22:34 +0000

Murfreesboro TN Weston Park Green Planet Servicing (Freddie Mac) and Fifth Third Bank Short Sale Closing

Murfreesboro TN Weston Park Green Planet Servicing (Freddie Mac) and Fifth Third Bank Short Sale Closing

Jim McCormack, a Nashville, Brentwood, Franklin, Nolensville, Spring Hill, Thompson’s Station, Murfreesboro, Smyrna, LaVergne (La Vergne), Antioch, Columbia, Mt. Juliet (Mount Juliet), Springfield, Gallatin, Hermitage, Hendersonville, Clarksville and Middle Tennessee (Davidson, Maury, Montgomery, Robertson, Rutherford, Sumner, Williamson and Wilson Counties) Short Sale and Foreclosure REALTOR, Real Estate Expert and Real Estate Investor was able to get this Murfreesboro TN Weston Park Green Planet Servicing (Freddie Mac) and Fifth Third Bank Short Sale listed and closed in 110 days. Jim was able to get this Murfreesboro TN Weston Park Green Planet Servicing (Freddie Mac) and Fifth Third Bank Short Sale closed due to the following reasons:

Proper research and work prior to marketing the home for a sale. This includes researching the loan types, correctly packaging and handling the seller’s short sale request to the 1st mortgage lender (Green Planet Servicing) and 2nd mortgage lender (Fifth Third Bank) and engaging the 1st mortgage lender to explain the sellers’ situation and that valuing the Property would be difficult due to a lack of sales and the builder (Deer Creek Construction) no longer building in the neighborhood due to financial problems, which resulted in the neighborhood being de-valued by lower-end builders who are now doing the building in the neighborhood.
Reasonably accurate valuations by Green Planet Servicing and Fifth Third Bank.
Regularly communicating with the 1st and 2nd mortgage lenders.

Please do not let the bank foreclose on you. If you have a property and you owe more than the property is worth and have a HAFA eligible mortgage loan, an FHA Insured mortgage loan, a VA Guaranteed mortgage loan, or any type of mortgage loan, and you have missed payments, or will miss payments, please contact Franklin Tennessee Short Sales and Foreclosures Expert for a free no obligation consultation to discuss your foreclosure prevention options.

______________________________________________

Spring Hill TN Mathis Valley Bank of America VA Short Sale Closing

Jim McCormack - Real Estate Expert — Tue, 17 Apr 2012 20:10:33 +0000

Spring Hill TN Mathis Valley Bank of America VA Short Sale Closing

Spring Hill TN Mathis Valley Bank of America VA Short Sale Closing

Jim McCormack, a Nashville, Brentwood, Franklin, Nolensville, Spring Hill, Thompson’s Station, Murfreesboro, Smyrna, LaVergne (La Vergne), Antioch, Columbia, Mt. Juliet (Mount Juliet), Springfield, Gallatin, Hermitage, Hendersonville, Clarksville and Middle Tennessee (Davidson, Maury, Montgomery, Robertson, Rutherford, Sumner, Williamson and Wilson Counties) Short Sale and Foreclosure REALTOR, Real Estate Expert and Real Estate Investor was able to get this Spring Hill TN (in Mathis Valley) Bank of America (a Veterans Administration (VA) Guaranteed Loan) Short Sale listed and closed in 207 days for $190,000 despite the VA having an initially inaccurate appraisal of $227,000 that Jim was able to dispute down to $210,000. Jim then pushed for a new appraisal, which eventually came in at $196,000 (a valuation that allowed the short sale to be approved and closed). Jim was able to get this Spring Hill TN Mathis Valley Bank of America VA Short Sale approved and closed due to the following reasons:

Proper research and work prior to marketing the property for sale. This includes researching the loan type and correctly packaging and handling the seller’s short sale request.
Understanding the VA short sale appraisal, valuation and offer approval processes.
A reasonably accurate final appraisal by the VA.

______________________________________________

Murfreesboro TN Foxfire Meadows Bank of America FHA Short Sale Closing

Jim McCormack - Real Estate Expert — Mon, 16 Apr 2012 21:48:11 +0000

Murfreesboro TN Foxfire Meadows Bank of America FHA Short Sale Closing

Murfreesboro TN Foxfire Meadows Bank of America FHA Short Sale Closing

Jim McCormack, a Nashville, Brentwood, Franklin, Nolensville, Spring Hill, Thompson’s Station, Murfreesboro, Smyrna, LaVergne (La Vergne), Antioch, Columbia, Mt. Juliet (Mount Juliet), Springfield, Gallatin, Hermitage, Hendersonville, Clarksville and Middle Tennessee (Davidson, Maury, Montgomery, Robertson, Rutherford, Sumner, Williamson and Wilson Counties) Short Sale and Foreclosure REALTOR, Real Estate Expert and Real Estate Investor was able to get this Murfreesboro TN (in Foxfire Meadows) Bank of America FHA Short Sale listed and closed in 56 days despite the short sale mortgage lender (Bank of America) mishandling the file several times early in the FHA short sale process. Jim was able to get this Murfreesboro TN Foxfire Meadows Bank of America FHA Short Sale pre-approved and ready to sell due to the following reasons:

Proper research and work prior to marketing the home for a sale. This includes researching the loan type and correctly packaging and handling the seller’s application to the HUD Preforeclosure Sale Program (see my blog post FHA Insured Loan Foreclosure and Short Sale Process for information about this short sale program).
Understanding the FHA short sale and offer approval process.
A reasonably accurate appraisal by the mortgage lender (Bank of America).

______________________________________________

La Vergne TN Watersedge Successful Bank of America Short Sale Closing

Jim McCormack - Real Estate Expert — Mon, 02 Apr 2012 17:58:34 +0000

La Vergne TN Watersedge Successful Bank of America Short Sale Closing

La Vergne TN Watersedge Successful Bank of America Short Sale Closing

Jim McCormack, a Nashville, Brentwood, Franklin, Nolensville, Spring Hill, Thompson’s Station, Murfreesboro, Smyrna, LaVergne (La Vergne), Antioch, Columbia, Mt. Juliet (Mount Juliet), Springfield, Gallatin, Hermitage, Hendersonville, Clarksville and Middle Tennessee (Davidson, Maury, Montgomery, Robertson, Rutherford, Sumner, Williamson and Wilson Counties) Short Sale and Foreclosure REALTOR, Real Estate Expert and Real Estate Investor was able to get this La Vergne TN (in the Watersedge neighborhood) Bank of America Short Sale Closing listed and closed in 272 days despite a terrible mishandling of the Borrower’s HAFA short sale program application and horrible initial valuation ($130,274) by the first HAFA vendor selected by Bank of America. After many months of trying to get the file bank on track, Jim was successful in convincing Bank of America to re-assign the file to another HAFA vendor, which was able to process the HAFA application correctly.

Jim was able to get this La Vergne TN Bank of America short sale closed due to the following reasons:

Proper research and work prior to marketing the home for a sale. This includes researching the loan type, quickly determining that the mortgage loan might qualify for the HAFA Short Sale Program and correctly packaging and handling the seller’s short sale request to the mortgage lender, Bank of America.
Ability to convince Bank of America to re-assign the file to a different HAFA vendor and get a corrected valuation ($92,700 corrected valuation versus the original absurd $130,274 valuation).
Understanding the HAFA Short Sale Program offer approval process.

Please do not let the bank foreclose on you. If you have a property and you owe more than the property is worth and have a HAFA eligible mortgage loan, an FHA Insured mortgage loan, a VA Guaranteed mortgage loan, or any type of mortgage loan, and you have missed payments, or will miss payments, please contact Murfreesboro Tennessee Short Sales and Foreclosures Expert for a free no obligation consultation to discuss your foreclosure prevention options.

______________________________________________

Nashville Brentwood Franklin Nolensville Murfreesboro Smyrna LaVergne Antioch Short SalesNashville Bank and Mortgage Foreclosure HelpNashville Short Sale Help & InformationStop Nashville Bank Foreclosure Now with a Quick Cash Offer

Jim McCormack - Real Estate Expert — Sun, 01 Apr 2012 22:00:50 +0000

Nashville Brentwood Franklin Nolensville Murfreesboro Smyrna LaVergne Antioch Short Sales and Foreclosures
Nashville Bank and Mortgage Foreclosure Help
Nashville Short Sale Help and Information
Stop Nashville Bank and Foreclosure Now with a Short Sale or Quick Cash Offer

______________________________________________

Murfreesboro TN Indian Hills Successful Bank of America Short Sale Closing

Jim McCormack - Real Estate Expert — Sat, 03 Mar 2012 22:21:56 +0000

Murfreesboro TN Indian Hills Successful Bank of America Short Sale Closing

Murfreesboro TN Indian Hills Successful Bank of America Short Sale Closing

Jim McCormack, a Nashville, Brentwood, Franklin, Nolensville, Spring Hill, Thompson’s Station, Murfreesboro, Smyrna, LaVergne (La Vergne), Antioch, Columbia, Mt. Juliet (Mount Juliet), Springfield, Gallatin, Hermitage, Hendersonville, Clarksville and Middle Tennessee (Davidson, Maury, Montgomery, Robertson, Rutherford, Sumner, Williamson and Wilson Counties) Short Sale and Foreclosure REALTOR, Real Estate Expert and Real Estate Investor was able to get this Murfreesboro TN Indian Hills Bank of America Short Sale listed and closed in 119 days despite a pending foreclosure sale by the not-short first mortgage lender (Midland Mortgage – an FHA insured mortgage loan). Jim was able to get this Murfreesboro TN Bank of America short sale closed due to the following reasons:

Proper research and work prior to marketing the home for a sale. This includes researching the loan types, quickly determining that the 1st mortgage loan would not be short (they received a full payoff) and correctly packaging and handling the seller’s short sale request to the 2nd mortgage lender, Bank of America.
Communicating with the not short 1st mortgage lender, Midland Mortgage, to keep them from scheduling a foreclosure sale.
A reasonably accurate valuation by Bank of America.
Helping the Bank of America short sale negotiators work around their confusion caused by the 1st mortgage loan not being short (the were not experienced at this type of short sale).

______________________________________________

Government Settles Foreclosure Lawsuits With Major Banks

Jim McCormack - Real Estate Expert — Thu, 09 Feb 2012 21:43:47 +0000

Government Settles Foreclosure Lawsuits With Major Banks
US Government and States Reach $25 Billion Foreclosure Case Settlement With National Mortgage Companies

According to this Bloomberg Business Week article, Banks Agree to $25 Billion Deal to End Foreclosure Probe, the federal government and state AG’s agreed to settle lawsuits stemming from the illegal and unethical foreclosure practices of the large national banks (Ally/GMAC, Bank of America, CitiMortgage, JPMorgan Chase and Wells Fargo ). Under the foreclosure settlement, the banks agreed to follow new servicing guidelines when dealing with borrowers who are in default or facing foreclosure. The new mortgage servicing guidelines, which are detailed in RETURN INTEGRITY & ACCURACY TO FORECLOSURE AND BANKRUPTCY PROCEEDINGS, require the major banks to offer financially distressed homeowners and property owners more workout options, be more careful during the foreclosure process and pay homeowners and property owners cash payments for mistakes made by the large banks. If you feel that your mortgage lender has treated you unfairly, or violated this new settlement, I would recommend that you file a complaint against the bank as detailed on my website at How To File A Complaint Against A Bank.

Whatever you do, please do not let the bank foreclose on you. If you have a house, or investment property and you owe more than the house or property is worth and have a HAFA eligible mortgage loan, an FHA Insured mortgage loan, a VA Guaranteed mortgage loan, or any type of mortgage loan, and you have missed payments, or will miss payments, please contact Franklin Tennessee Short Sales and Foreclosures Expert for a free no obligation consultation to discuss your foreclosure prevention options. Avoiding foreclosure by completing a short sale can salvage your credit, protect you from a deficiency judgment (the lender/bank pursuing you for their loss) and make it possible to buy another house or property sooner.

______________________________________________

Banks Paying Cash to Financially Distressed Homeowners for Short Sales

Jim McCormack - Real Estate Expert — Tue, 07 Feb 2012 21:48:54 +0000

Banks Paying Cash to Financially Distressed Homeowners for Short Sales
Banks Giving up to $30,000 to Delinquent Borrowers to Avoid Foreclosures

According to this Bloomberg.com article, Banks Paying Cash to Homeowners to Avoid Foreclosures banks are giving financially distressed homeowners and upside down (i.e. underwater) homeowners up to $30,000 to avoid foreclosure and complete a short sale. Per the article, not every lender is offering this type of short sale and it is up to the bank/lender to pick who qualifies. Even if your bank/lender does not offer this type of short sale, they may deem you eligible for a HAFA Short Sale, which can give a financially distressed homeowner up to $3,000 to complete a short sale. Generally, these incentives are only available to owner occupants (i.e. not investors), unless the homeowner lived in the property recently and moved out due to a hardship less than 12 months ago. The time limit depends on the loan investor (i.e. the financial institution that owns your mortgage loan – see Who Owns My Mortgage Loan? for more information.

The reasons that a mortgage lender/bank would be willing to pay financially distressed homeowners to complete a short sale are:

Depending on the state that the property is located in, the foreclosure process can take a long time (from many months to several years). A short sale can be a much faster way for mortgage lenders/banks to recoup their money.
Short sales generally result in mortgage lenders/banks recovering more of their money since the foreclosure process costs more money and foreclosed homes sell at bigger discounts.
Short sales are less damaging to overall market values than foreclosures.

Please do not let the bank foreclose on you. If you have a house, or investment property and you owe more than the house or property is worth and have a HAFA eligible mortgage loan, an FHA Insured mortgage loan, a VA Guaranteed mortgage loan, or any type of mortgage loan, and you have missed payments, or will miss payments, please contact Franklin Tennessee Short Sales and Foreclosures Expert for a free no obligation consultation to discuss your foreclosure prevention options. Avoiding foreclosure by completing a short sale can salvage your credit, protect you from a deficiency judgment (the lender/bank pursuing you for their loss) and make it possible to buy another house or property sooner.

______________________________________________

Columbia TN Successful Bank of America (Freddie Mac) Short Sale Closing

Jim McCormack - Real Estate Expert — Wed, 25 Jan 2012 19:14:50 +0000

Columbia TN Successful Bank of America (Freddie Mac) Short Sale Closing

Columbia TN Successful Bank of America (Freddie Mac) Short Sale Closing

Jim McCormack, a Nashville, Brentwood, Franklin, Nolensville, Spring Hill, Thompson’s Station, Murfreesboro, Smyrna, LaVergne, Antioch, Columbia, Mt. Juliet, Springfield, Gallatin, Hermitage, Hendersonville, Clarksville and Middle Tennessee (Davidson, Maury, Montgomery, Robertson, Rutherford, Sumner, Williamson and Wilson Counties) Short Sales and Foreclosures REALTOR, Real Estate Expert and Real Estate Investor was able to get this Columbia TN (Maury County) Bank of America (Freddie Mac) 1st Mortgage short sale listed and closed in 199 days despite an imminent foreclosure sale date, several inaccurate valuations by Bank of America and the Borrower being declined from the HAFA short sale program at the last minute due to the following reasons:

Proper research and work prior to marketing the home for a sale. This includes researching the loan type and correctly packaging and handling the seller’s application to the HAFA Short Sale Program (see my information on the HAFA Short Sale Program for information about this short sale program).
Understanding the HAFA short sale program, normal loss mitigation procedures and short sale and short sale offer approval processes.
Being able to get the short sale mortgage lender down to a price that the buyer would pay.

______________________________________________