Waiting Period for Those w/Short Sales or Deed-in-Lieu Shortened

Those of us in real estate saw the writing on the wall here. Banks have to lend money and with such a huge number of people “in trouble” with real estate, they are not going to be able to discriminate against those who had good credit and just made a poor purchase.

Via George Souto (McCue Mortgage) FHA, CHFA, VA Mortgages CT.:

Fannie Mae has announced a new updated. This time they are revising the waiting period for Deed-in-Lieu of foreclosure and Short Sale on conventional conforming loans effective with applications dated on or after July 1, 2010. Fannie Mae’s Automated Underwriting System (DU) will be updated to version 8.1 and implemented during the weekend of June 19, 2010 to include these changes. No changes will be made to bankruptcies or strict foreclosure, so the present guidelines will continue to apply.

Below is a breakdown and time periods for the new changes.

Deed-in-Liew of Foreclosure–2 years from completion date, MAX LTV 80%
Exception for Extenuating circumstances-Deed-in-Lieu of Foreclosure–2 years from completion date, Max LTV 90%
Short Sale–2 years from completion, Max LTV 90%
Exceptions for Extenuation circumstances Short Sale–2 years from completion date and Max LTV 90%

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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