Waiting Time To Buy
Whether you’ve been through a foreclosure or a short sale, you’re probably eager to get back on sound financial footing again by purchasing another home as soon as possible. However, those who have been through short sales and foreclosures will need to go through a waiting period before you can buy a new home.
Waiting times for foreclosures and deeds-in-lieu of foreclosure: Most people who have been through a foreclosure will need to wait 24 to 72 months before they can get approved for a new mortgage that has a competitive interest rate.
Waiting times for short sales: Short sales tend to result in shorter wait times for home buyers. Those who go through a short sale process may be able to get a good interest rate on a new loan in about 24 months.
These wait times are pretty much set in stone, and it would be a rare day that someone could avoid waiting at least two years following a foreclosure or short sale. Even though the Federal Housing Administration has instituted guidelines since 2010 recommending immediate new mortgage approval for some short sellers, the reality is that lenders will probably not follow this guideline — unless the short seller was perfectly on time with all of his her payments.
Do you want to evaluate the potential effects of your foreclosure or your short sale on your ability to buy another home? By looking at these potential effects, you can evaluate whether a bankruptcy solution could be a good option for avoiding these effects in your case.