Who or What is Fannie Mae?
Fannie Mae is the entity that holds great power in the conventional mortgage market. Fannie Mae is not a governmental agency as most think but is private corporation and is America's largest home mortgage buyer, Fannie Mae buys home mortgage loans in the secondary mortgage market. Because Fannie Mae ends up with these properties back if the mortgage borrowers default, Fannie Mae has a strong interest in setting forth stringent qualifications and guidelines to lessen the chances that a borrower will lose their home and go into foreclosure. Fannie Mae now addresses separate waiting periods depending on the type of foreclosure. If you have documented extenuating circumstances, this will have a direct bearing on the number of years you will have to wait to get a conventional loan for another home.
What is Documented Extenuating Circumstances?
Fannie Mae allows for extenuating circumstances like:
Death or sever Illness
Long Distance Job Transfer
Accident Resulting in Severe Injury
Generally, extenuating circumstances are things that happen that are beyond your control, which greatly affect your ability to continue making your mortgage payments.
With these types of documented extenuating circumstances, the waiting period is less than without them. Unfortunately, being unable to afford an increase in payment due to an interest rate increase on your adjustable rate mortgage is not considered a circumstance that is beyond your control.
Waiting Period to Buy After Foreclosure
Buying After a Foreclosure
The waiting period is 5 years up to 7 years.
Buying After a Foreclosure With Extenuating Circumstances
The waiting period is 3 years up to 7 years.
Buying After a Deed-in-Lieu of Foreclosure (signing the deed/title over to the lender)
The waiting period is 4 years up to 7 years.
Buying After a Deed-in-Lieu of Foreclosure With Extenuating Circumstances
The waiting period is 2 years up to 7 years.
Buying After a Short Sale
The current waiting period is 2 years, however, if a seller does not have a 60 day late pay, that seller may immediately buy another home. It's a great reason to stay current on your payments while the home is being sold as a short sale. The challenge here is that many Lenders will not agree to a Short Sale if you are not behind on your mortgage payments. If you have no extenuating circumstances, you will need to wait four years from the date of completion, meaning the date your deed-in-lieu of foreclosure was recorded. In addition to the waiting period, some loans require 10-20% down and a minimum FICO Credit score. The home you purchase must be your principal place of residence, not a rental nor a vacation home.
Plano Real Estate ownership has proven to be a benefit to most as the Plano real estate market remains strong and the City of Plano still ranks as the City with the highest income in the entire country. Weather your next home purchase be a greatly valued Plano Foreclosure home and a new luxury you should always have a professional Plano Realtor at your side who is looking after your best interest.
