Bankruptcy & Foreclosure

    Chapter 7

    • Conventional:  4-years
    • FHA & Ga Dream:  2-years since the discharge date
    • VA:  2-years
    • USDA:  3-years
    • Non-Traditional:  1-day

    Chapter 13

    • Conventional:  2-years from discharge date or 4-years from dismissal date.
    • FHA & USDA:  1-year, with written permission from bankruptcy court to enter into the mortgage transaction.
    • VA:  1-year, if buyer has made at least 12 months of the payments on time and the Trustee or BK Judge approves the new credit.
    • Non-Traditional:  1-day

    Multiple Bankruptcy Filings

    • Conventional:  5 years if more than one filing within the past 7 years.

    Foreclosure

    • Conventional:  7-years
    • FHA & USDA:  3-years from the date the title was transferred. Foreclosure rules apply even if the foreclosure was included in the bankruptcy.
    • VA:  2-years
    • Non-Traditional:  1-day

    Foreclosure & Bankruptcy on report

    • The bankruptcy waiting period may be applied if the loan file includes documentation to verify that the mortgage was discharged in the bankruptcy.
    • If the BK was paying off the residual from a foreclosure started prior to the BK you must follow foreclosure waiting periods.

    Short Sale

    • Conventional:  4-years
    • FHA & Ga Dream:  3-years
    • VA:  No seasoning requirements. Borrower to provide a letter of explanation.
    • USDA:  3-years
    • Non-Traditional:  1-day

    Deed-in-Lieu of Foreclosure

    • Conventional:  4-years
    • FHA & Ga Dream:  3-years
    • VA:  2-years from the foreclosure date.
    • USDA:  3-years
    • Non-Traditional:  1-day


    Above are General Guidelines...there are exceptions for extenuating circumstances