Short-SaleIf a Wisconsin home owner completes a short sale on their house, how long will they have to wait until they can purchase another home? What if they let the Wisconsin property go to foreclosure? This is a common question that I hear from home owners looking to short sale their home. The answer will depend on which lender these hopeful home buyers end up choosing. For now, let’s focus on the two largest entities as an example. Here is an excerpt from a HREU blog that I recently came across:

Fannie Mae

Foreclosure: 7 Years

Deed-in-Lieu/Short Sale: 2 Years with 80% LTV /4 Years with 90% LTV

FHA

Foreclosure: 3 Years

Deed-in-Lieu/Short Sale: No Waiting Period *

*If the borrower was current on their mortgage and all other installment debt for the 12 months preceding the short sale, the subject property is not in the same geographical area as the short sale and the short sale lender accepted the short sale as payment in full.

Deed-in-Lieu/Short Sale: 3 Years*

*It is treated as a foreclosure if the borrower was late on the mortgage and other installment debt for the 12 months preceding and at the time of the short sale. In addition, if the borrower pursued the short sale to take advantage of the declining market or purchased at a reduced price a similar or superior property within a reasonable commuting distance.

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