Buying a Home after Short-sale, Foreclosure or Bankruptcy

Shashank ShekharCEO, Arcus Lending

About Arcus Lending

• Arcus Lending is Mortgage Lender based in San Jose, California

• Products Offered: Residential Mortgages- FHA, Conventional, VA, 203K, HARP, HomePath

• Geography Served: California, Washington and Oregon

• What are they known for: Legendary customer service, quick closing and rates that are consistently better than the leading banks

Ab About Shashank Shekhar

• Shashank is the Founder and CEO of Arcus Lending

• An Amazon.com Best-selling Author, Shashank is widely regarded as California’s #1 Mortgage Expert

• He is a National speaker, and a blogger who is frequently tapped for his expertise by various national and local media including FOX, CBS, ABC and NBC

Agenda

• Mortgage Qualification After a short-sale• Mortgage Qualification After Foreclosure• Mortgage Qualification After Bankruptcy

Mortgage Qualification After a Short-sale

• Qualifying for Conventional mortgage after Short-sale: – For conventional mortgage backed by Fannie Mae the following waiting period

requirements apply • Two years for transactions with a maximum Loan-to-value ratio (LTV) of

80%. • Four-year for transactions with a maximum LTV of 90%• Seven years for transactions with an LTV > 90%• For loans backed by Freddie Mac , a regular LTV loan is possible after 4

years

• Qualifying for FHA Loan after Short-sale:– To qualify for an FHA loan after short-sale the waiting period is 3 years– Some exceptions may apply if you were not late on any mortgage or

installment debt 12 months prior to the short-sale debt– Caveat to three year wait period: No bankruptcy or foreclosure prior to the

short-sale

Mortgage Qualification After Foreclosure

• Qualifying for Conventional mortgage after Foreclosure: – Waiting Period: 7 years measured from the completion date of the

foreclosure action as reported on the credit report or other foreclosure documents provided by the borrower.

• Qualifying for FHA Loan after Foreclosure:– Waiting Period: 3 years after the foreclosure– If the loan secured by the foreclosed property was not an FHA loan,

the foreclosure time frame is measured from the foreclosure completion date.

– If the loan secured by the foreclosed property was an FHA loan, the three year time frame is measured from the date FHA paid the insurance claim.

Mortgage Qualification After Bankruptcy

• Qualifying for Conventional mortgage after Bankruptcy: – For Chapter 7 bankruptcy, waiting period is 4 years before which you can

qualify for a conventional mortgage. – For Chapter 13 bankruptcy, 24 months must elapse from the discharge date

or 48 months from the dismissal date.

• Qualifying for FHA Loan after Bankruptcy:– Wait period for an FHA loan after Chapter 7 bankruptcy is two years.– To qualify for an FHA loan after Chapter 13 bankruptcy, following guidelines

apply:• Document at least one year into the payout plan has elapsed• Document all required payments have been made on time• If borrower is still in repayment, obtain court permission to enter into the new

mortgage

Questions

• Call (408) 615 0655• Email: Info@ArcusLending.com• Website: www.ArcusLending.com• Blog: www.LendingExpertBlog.com

Shashank Shekhar NMLS 8176