How To Document A Foreclosure, Short Sale Or Bankruptcy For Mortgage Lending

Getting a mortgage after foreclosure, short sale, or bankruptcy, or even a combination of the two is absolutely doable. However depending on the credit circumstance different documents could be needed for properly documenting the previous  derogatory credit item.

Here’s how to properly document any one of the big three credit issues

Foreclosure- can be documented with the trustee’s sale date deed. Lender will use the latest date stamped on the trustees sale date deed. 3 year window  using an FHA insured loan, seven years on a conventional loan.

Short sale-can be documented with the grant deed deeding the property from you the seller to the new buyer. Lender will go by  the most recent date stamped on the grant deed as well. 3 year window using an FHA insured loan, seven years on a conventional loan unless 80% loan to value or lower

Bankruptcy-full bankruptcy discharge papers including the schedule of creditors from the most recent discharge date.  Lender will go by the discharge date. 4 Year window using an FHA insured loan, four years on a conventional loan.

Most mortgage professionals have a relationship with a particular title company who can who can obtain the information necessary directly from county records making the process dramatically easier.

If  you would like to qualify for a mortgage to purchase or refinance a home, start by contacting Scott@sonomacountymortgages.com!

Posted in:

RELATED MORTGAGE ADVICE FROM SCOTT SHELDON

Here's a strategy to buy a home and set up a future refinance

Here’s a strategy to buy a home and set up a future refinance

For families looking to purchase a home, good news has arrived interest rates are slowly…

why being a picky home buyer could be an issue

Why being choosy as home buyer could be problematic

You’ve decided to buy a home, you’ve gotten preapproved with a lender, your file has…

How your financial experience might hinder your ability to get a mortgage loa

How your financial experience might hinder your ability to get a mortgage loan

Getting a loan to buy a home is a maze of questions, examinations, along with…

Here’s how to buy a house even if you think your income may not qualify

Here’s how to buy a house even if you think your income may not qualify

If you’re looking to get prequalified to buy a home, one of the main elements,…

View More from The Mortgage Files:

2 Comments

  1. […] Previous short sale, foreclosure, or bankruptcy of any capacity in the last 7 years […]



  2. […] for such financing is incredibly lenient. The FHA routinely signs off on previous unfortunate credit circumstances including short sale, foreclosure or even bankruptcy in the last few […]



begin your mortgage journey with sonoma county mortgages

Let us make your mortgage experience easy. Trust our expertise to get you your best mortgage rate. Click below to start turning your home dreams into reality today!