Foreclosures & Short Sales

Subject: “Bankruptcy Waiting Periods”
Source: John Price. Senior Loan Officer, Mobile: 630.673.1940

Chapter 7 Bankruptcy = 4 years conventional. (FHA = 2 years)

Chapter 13 Bankruptcy = 2 years if discharged, 4 years if dismissed. (FHA = must have paid on time for 12 months does not have to be discharged)

If filed more than one Bankruptcy in last 7 years, have to wait 5 years from most recent discharge.

Foreclosure = 7 years. (FHA = 3 years)

Deed-in-Lieu/Pre-foreclosure Sale = 2 years up to an 80% LTV, 4 years up to a 90% LTV, after 7 years up to a 95% LTV. (FHA = 3 years)

In answer to the question regarding how long information stays on your credit report… Good information stays on the report indefinitely, bankruptcy – 10 years, all other negative information with no balance owing is 7 years, if there is a balance still owed and it is negative (collection account) it can continue to be reported indefinitely until it is paid.