Credit After Foreclosure, Bankruptcy or Short Sale

Answers to the following Questions can be accessed by downloading a pdf file linked above:

Q 1. How long is the time period after a foreclosure before a consumer can be eligible to obtain credit to purchase a home?

Q2. Does a shorter time period apply if the borrow has “extenuating circumstances” that led to the foreclosure?

Q3. What are “extenuating circumstances”?

Q4. What are the requirements to re-establish a credit history after a foreclosure?

Q5. How long is the time period after a deed-in-lieu of foreclosure before a consumer can be eligible to obtain credit to purchase a property?

Q6. Does a shorter time period apply if the borrower has “extenuating circumstances” that led to the deed-in-lieu of foreclosure?

Q7. Are deed-in-lieu of foreclosure actions identified on a credit report?

Q8. What are the requirements to re-establish a credit history after a deed-in-lieu of foreclosure?

Q9. How long is the time period after a “pre foreclosure sale” before a consumer can be eligible to obtain credit to purchase a property?

Q10. What is a “pre foreclosure sale” mentioned in Question 9 and is that the same as a short sale?

Q11. Does a shorter time period apply if the borrower has “extenuating circumstances” that led to the pre foreclosure (short) sale?

Q12. If a borrower sold his or her property as a short sale but was never delinquent on that mortgage and is now attempting to purchase a new primary residence, will Fannie mae purchase the loan?

Q13. Are pre foreclosure sales (short sales) identified on a credit report?

Q14. How long is the time period after a Chapter 7 or Chapter 11 bankruptcy before a consumer can be eligible to obtain credit to purchase a property?

Q15. How long is the time period after a Chapter 13 bankruptcy before a consumer can be eligible to obtain credit to purchase a property?

Q16. Does a shorter time period apply if the borrower has “extenuating circumstances: that led to the bankruptcy (all actions)?

Q17. How long is the time period after multiple bankruptcy filings before a consumer can be eligible to obtain credit to purchase a property?

Q18. What are “multiple bankruptcy filings”?

Q19. Does a shorter time period apply if the borrower has “extenuating circumstances” that led to the multiple bankruptcies?

Q20. What is the difference between a Chapter 13 and a Chapter 7 bankruptcy?

Q21. What is the difference between a Chapter 13 dismissal and a Chapter 13 discharge?

Q22. What are the requirements to re-establish a credit history?

Q23. What is a FICO Score?

Q24. What factors go into determining a FICO score?

Q25. How does a mortgage modification affect my FICO score?

Q26. How does a bankruptcy affect my FICO score?

Q27. How does a shore sale, deed-in-lieu-of foreclosures or a foreclosure affect my FICO score?

Q28. What won’t affect my FICO score?

Q29. Where can I get more information?

SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® Member Legal Services 525 South Virgil Avenue Los Angeles, CA 90020 The information contained herein is believed accurate as of August 4, 2010. It is intended to provide general answers to general questions and is not intended as a substitute for individual legal advice. Advice in specific situations may differ depending upon a wide variety of factors. Therefore, readers with specific legal questions should seek the advice of an attorney. Revised by Sonia M. Younglove, Esq.