The state of today’s home market is being felt across the country as well as here in Elmhurst. Your real estate representative is forced to handle situations that have not been seen in many years. From short sales, to foreclosures, to bank-owned homes, The Gracik Makinney Real Estate Group is well equipped to handle any eventuality. Common questions we hear are

  • How will my credit be affected by a foreclosure?
  • What will my waiting period be for my next loan if I have foreclosed or declared bankruptcy?

In a recent email from Old Second Bank’s Sue Welsh, the considerations for financing were spelled out by lending scenario and lending group. The information is below:


Foreclosure  Short Sale
Deed-In-Lieu
 
Ch. 7 
Bankruptcy
 
Ch. 13
Bankruptcy

Fannie Mae 7 Yrs from
completion date
2 Yrs with max 80% LTV
4 Yrs with max 90% LTV
7 Yrs > 90% LTV
4 Yrs from discharge or
dismissal date
2 Yrs from discharge date
4 Yrs from dismissal date

Freddie Mac • 7 Yrs from
completion date
• 4-7 Yrs max
10% down
• 4 Yrs from completion
date for short sale
• 4 Yrs for deed-in-lieu
4 Yrs from discharge or
dismissal date
2 Yrs from
discharge date

FHA 3 Yrs from
completion date
3 Yrs from
completion date
2 Yrs from
discharge date
1 Yr of the payout must elapse
& payment performance must
be satisfactory; buyer must
receive permission from the
court to enter into a mortgage

VA 2 Yrs from
discharge date
No specific information
in this yet, assume
foreclosure rule of 2 Yrs
2 Yrs from
discharge date
1 Yr of the payout must elapse
& payment performance must
be satisfactory; buyer must
receive permission from the
court to enter into a mortgage

USDA Rural 3 Yrs from
completion date
3 Yrs from
completion date
3 Yrs from
discharge date
1 Yr of the payout must elapse
& payment performance must
be satisfactory; buyer must
receive permission from the
court to enter into a mortgage

Jumbo* Based on specific investor guidelines