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!