Home buyers and homeowners with negative credit events like a bankruptcy, short sale or foreclosure often have misconceptions about their ability to borrow again and the options that may be available to them.
Although these events do require a mandatory wait time (referred to as seasoning), there's a good chance the wait is shorter than you think.
CARES Act Forbearance (COVID-19 Relief)
Chapter 7/11 Bankruptcy
Chapter 13 Bankruptcy
Short Sale / Deed in Lieu
In some cases, extenuating circumstances can be considered to reduce the required seasoning time. To be eligible the borrower must have re-established credit for 2 years and will be required to provide documentation that the incident was not due to financial mismanagement. Some examples of extenuating circumstances include the death of a primary wage earner, long-term illness or disability not covered by insurance and prolonged loss of employment for reasons beyond the borrower’s control.