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Thursday, September 25, 2008

Consequences of Defaulting on Mortgage Payments

Fannie Mae recently released updated underwriting guidelines for new mortgage loans that directly address individuals with various types of foreclosure history.

* Potential borrowers with a foreclosure on their credit record must wait 5 years to be considered for new funding, and are subject to additional credit and down payment requirements for 5 to 7 years.

* Deed-in-lieu-of-foreclosures warrant a 4 year wait with additional requirements for 4 to 7 years.

* Short Sales require a two year wait.

DOWNLOAD FANNIE MAE GUIDELINES HERE...

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf

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