Atlanta Foreclosure, Short Sale, and Bankruptcy – Loan Type

Mortgage LoansAs we are seeing a recovery in the Atlanta market place many clients will and do have blemishes they will need help with. Here are the general rules for Atlanta foreclosure, short sale, and bankruptcy, depending on loan type:

 

 

 

FHA Loan

  • 3 years after a short sale or foreclosure if the new loan is FHA
  • 2 year exception after a short sale if the following are met:
  1. No lates on mortgages or installment loans within 12 months of short sale;
  2. No deficiency balance owed; short sale is paid in full;
  3. Borrower not taking advantage of the market; i.e. not buying a similar home in same market area
  • 2 Years Bankruptcy

Conventional/Conforming Loan

  • 2 years after a short sale if the new loan is conforming with 20% down
  • 5 years after a short sale if the new loan is conforming with 10% down
  • 7 years after a foreclosure with a conforming loan
  • 3 Years Bankruptcy

Jumbo Loan

  • 5 to 7 years (depends on the program) after a short sale if the new loan is a jumbo (non conforming)
  • 7 years after a foreclosure

The date of the new loan application has to be the no earlier that the day after the anniversary (2, 3, 5, or 7 years) of the transfer sale of the property – when title changed. If someone filed bankruptcy and the house was included in the bankruptcy, the date of transfer may be some time after the bankruptcy was discharged.

For further information regarding Atlanta Foreclosure, Short Sale, and Bankruptcy – Loan Type call Regina Ambrose, Chapman Hall Realtors, 678-613-5636, or visit www.Homes4SaleInAtlanta.com to view thousands of homes for sale in Atlanta.

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