Mortgage Post BK, Short Sale, Foreclosure

Buy After A Foreclosure, Short Sale or BK

In the post housing crisis world we find ourselves in today, I run into scores of people who have faced foreclosure, short sale and/or bankruptcy.  These events  impact one’s ability to qualify for an Arizona home loan and to buy another home.  Every different type of Arizona Mortgage (FHA, VA, Conventional, USDA and JUMBO) requires that a home loan applicant wait out a different designated period of months/years following a BK, foreclosure or short sale before they can qualify for a new mortgage.  Once someone has patiently and eagerly sat on the home buying sideline and is once again deemed “eligible” to buy again they understandably may want to purchase again as quickly as possible.  We call the day that marks that their waiting period is over the individuals “eligibility date.”

What Does The “Eligibility Date” Mean?

The question many people who have been through a foreclosure, short sale or bankruptcy is what does the eligibility date actually mean for them in terms of their new home buying journey?  Can a previously sidelined buyer close on their next home loan as of that date OR is that the date that they can apply for a AZ home loan OR does that date mark the day that the reborn home buyer can execute a purchase contract on their next house?

All of these questions factor into the questions actual answer.  The answer is that a buyer can execute a purchase contract on a new home prior to their eligibility date as long as they do not close on the home prior to their eligibility date.  In addition and probably most important is that the buyer’s Arizona Mortgage Lender cannot execute/date a loan application containing the new property address or order an appraisal for the new property prior to the borrower’s eligibility date.  So while a buyer that has been eagerly awaiting their return to home ownership, they will need to plan to close on their new home approximately 2 weeks after their eligibility date.  This will allow their Phoenix area lender to process their loan application, order/receive a complete appraisal and obtain full underwriting approval.  Beware, each Arizona mortgage company has different processing and closing time-frames.

For more details on a home buyer’s eligibility date check out the following links:



Please call or email me if you have any question about timing up your purchase after a foreclosure, short sale or bankruptcy.

By Jeremy House


  1. Patti Kane says:

    I had a short sale last year and my Realtor recommend for a home loan. I am very happy to be able to purchase again.
    CFS Mortgage assists homeowners who have recently been through a foreclosure, short sale or have recently emerged from bankruptcy.

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