A pre-foreclosure or short sale is the sale of a property in lieu of a foreclosure resulting in a payoff of less than the total amount owed, which was pre-approved by the servicer.
The waiting period requirements for applying for a conventional mortgage backed by Fannie Mae are:
2 years for transactions with a minimum of 20% down, 4 years for transactions with a max ltv of 90%, and 7 years for transactions with an ltv greater than 90%.
FHA qualifications are a little bit different, you need to wait 3 years after a short-sale to qualify for an FHA loan. You can’t be late on any mortgage or installment loans during the 12 months prior to the short sale.
For a VA loan, you need to wait 2 years after a short sale to qualify for a VA loan.
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