Fannie Mae admitted that they were pushing foreclosures rather than Loan Modifications (so much for the governments help). To make matters worese, Anyone that has had a foreclosure in their past and wants to buy a home will face some challenges.
1. Must be 7 years out, unless there are extenuating circumstances, such as death in family, loss of income due to loss of job and all will have to be documented.
2. Even with proof and documented extenuating circumstances, it still has to be 3 full years out from date on credit report.
This is on all FHA loans that require 3.5% down and can be a 203B or 203K.
For additional information contact my friend Patrick Spencer at Envoy Mortgage.
