HOW DOES A LAS VEGAS SHORT SALE AFFECT FUTURE HOME OWNERSHIP?

 

A person's ability to obtain a mortgage for another home after a foreclosure, bankruptcy or short sale depends on the type of loan the person is seeking.

IF THE NEW MORTGAGE IS FANNIE MAE/FREDDIE MAC (Conventional)
If the applicant declared Bankruptcy (Chapter 7)
A four year waiting period is typically required, measured from the discharge or dismissal date of the bankruptcy action to obtain a new loan; a two year waiting period is permitted if extenuating circumstances (medical/death in the household as an example) can be document is measure from the discharge or dismissal date.
Bankruptcy (Chapter 7)
A four year waiting period is required from the dismissal date or a two waiting period from the discharge date to obtain a new loan.
If the applicant arranged a Deed in Lieu/Pre-Approved Successful Las Vegas Short Sale
The following waiting period requirements apply:
-    Two years with a new loan at 80% loan-to-value/combined loan-to-value
-    Four years with a new loan at 90^ loan-to-value/combined loan-to-value with mortgage insurance approval
-    Seven years with a new loan at loan-to-values per the Fannie/Freddie eligibility matrix/combined loan-to-value with mortgage insurance approval
A two year waiting period is permitted if extenuating circumstances can be documents, with maximum loan-to-values not to exceed 90% or the maximum loan-to values per the Fannie/Freddie eligibility matrix.
If the applicant opted for foreclosure
A seven year waiting period is required to obtain a new loan, and is measured from the completion date of the foreclosure action as report on the credit report or other foreclosure documents presented by the borrowers; a three year waiting period is permitted if extenuating circumstances can be documented and measured from the completion date of the foreclosure action.

IF THE NEW MORTGAGE IS FHA
If the applicant had a successful Las Vegas Short Sale
No wait if all mortgage, non-real estate debts and property taxes have not been late during the 12 months preceding a short sale; not done to take advantage of a declining market (strategic default – i.e., move out of area, loss or reduction of income/employment could be some valid reasons as opposed to a decline in value).  There are also options for the Las Vegas short sale to obtain financing immediately through nonconventional financing.  
If the applicant opted for foreclosure/Deed in Lieu
The homeowner is not eligible for an FHA insured mortgage for 3 years, as long as the borrower has at least 1 year of satisfactory credit.

IF THE NEW MORTGAGE IS VA
If the applicant had a successful Las Vegas Short Sale
No guidance.  Typically treated as a foreclosure but is at the discretion of the loan underwriter.
If the applicant opted for foreclosure/Deed in Lieu
The homeowner is not eligible for a VA insured mortgage for 2 years, as long as the borrower has at least 1 year of satisfactory credit.

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