{"id":6365,"date":"2025-03-05T08:08:30","date_gmt":"2025-03-05T13:08:30","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=6365"},"modified":"2025-03-05T08:08:33","modified_gmt":"2025-03-05T13:08:33","slug":"back-in-the-game-how-to-get-another-deed-after-a-bankruptcy-foreclosure-or-short-sale","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/back-in-the-game-how-to-get-another-deed-after-a-bankruptcy-foreclosure-or-short-sale\/","title":{"rendered":"Back in the Game: How to Get Another Deed After a Bankruptcy, Foreclosure, or Short Sale"},"content":{"rendered":"\n
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Finding a mortgage<\/a> again after a financial setback can seem like an impossible feat. But it\u2019s doable.<\/p>\n\n\n\n

Here, we consider foreclosures, short sales, and bankruptcies. We look at how they can be overcome for the purpose of acquiring a deed to a home.<\/p>\n\n\n\n\n\n\n\n

How Long Does It Take to Get Another Mortgage After Foreclosure?<\/h2>\n\n\n\n

If you\u2019ve experienced a foreclosure or other mortgage setback, you may be wondering what it will take to get a home loan again. Various loans have different waiting periods to endure after a foreclosure. If certain unusual events caused a loss of income (called \u201cextenuating circumstances\u201d), lenders shorten the waiting periods.<\/p>\n\n\n\n

If you have a 620+ credit score and intend to apply for a loan from Fannie Mae, you\u2019ll need to wait seven years after foreclosure. Buying after a deed in lieu<\/em><\/a> of foreclosure or after a short sale<\/em><\/a>? You\u2019ll need to wait four years.<\/p>\n\n\n\n

Freddie Mac also has applicants wait seven years beyond a foreclosure. Buying after a deed in lieu of foreclosure or a short sale is faster; it takes only four years.<\/p>\n\n\n\n

But you could qualify in as little as two to three years for a conventional loan with Freddie Mac or Fannie Mae if you can show extenuating circumstances led to your previous setback. Lenders want to lend. They don\u2019t want to make things unduly hard for someone who\u2019s experienced a setback that likely won\u2019t happen again.<\/p>\n\n\n\n

So, was your foreclosure caused by your ex defaulting after you split up? Were you laid off at work? Overwhelmed by unexpected medical bills? Did a working member of your household die? In other words, if you can show that your foreclosure stemmed from unforeseen factors outside your control, a lender can cut you some slack.  <\/p>\n\n\n\n

Still, applicants who\u2019ve experienced foreclosure must put 10% down. That\u2019s a larger down payment than the normal 3% minimum with conventional loans. And, as with any mortgage, the lender expects the borrower to maintain a reserve fund for emergencies, and enough income to fund insurance, property taxes, and home upkeep.<\/p>\n\n\n\n

What About Government-Backed Loans?<\/h2>\n\n\n\n
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Government-backed loans can be very helpful for people rebuilding their credit. For example, loans backed by the Federal Housing Administration may be available immediately to someone who\u2019s released a prior deed into a short sale to avoid defaulting on a mortgage loan.<\/p>\n\n\n\n

Your core options in the government-backed arena are these:<\/p>\n\n\n\n