Fannie Updates Qualifying Rules -Pre-Foreclosure
“Put your money where you mouth is”–is basically the new rule for people who have had a short sale or deed-in-lieu in their past. In fact, this is the first time Fannie addressed “short sales” and how they will treat them. So, here’s the skinny:
2 year waiting period and 20% down payments OR
4 year waiting period and 10% down payment OR
7 year waiting period and 5% down payment.
They also defined “extenuating circumstances” and said if people fall under this category, it’s 2 years and 10% down payment. more info www.MortgageCurrentcy.com
Credit scores still have to meet minumum.
Hook up with a credit repair company. Get the word out to real estate agents, past clients, friends & family. Mortgage Talking Points flyer you can download for subscribers.
May 17, 2010 by Karen Deis · 1 Comment
Since, 2000, I have trained loan officers & real estate agents with online ezines, seminars, sales and marketing tools, to help them increase their business. Prior to that, I was in the mortgage business for 28 years, owning a mortgage company, a real estate company, an appraisal firm and co-owned a mortgage company with a large builder.
This is a good deal 20% down and 2 years. If you stop paying your mortgage for a year you could have a sizable downpayment. Banks are swamped with paperwork and it could be more than a year before your are forced into action.
The average borrower in foreclosure has been delinquent for 438 days before actually being evicted (LPS Applied Analytics).
It’s a chance you take. But if it is successful, you have a nest egg to start over.