Purchase Post Short Sale, Foreclosure or BK

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Post foreclosure or short sale buyers eagerly wonder “when can I qualify for a new mortgage?”  While the answer depends upon several factors, one thing remains consistent.  Calculating the exact date someone is eligible for a home loan requires attention to detail.

Foreclosure and Short Sale Completion Dates

Verifying short sale and foreclosure completion dates is critical.  Before knowing when a completion date was, one must know what a completion date is.   Why?   When not done at the front, I’d bet bottom dollars it surfaces later at a very inopportune time.  When it does surface and if the borrower is not far enough past the completion date, the loan is dead.  Goofing on these crucial dates is emotionally draining and expensive for a home buyer halfway down the home buying trail.

Measure Twice, Cut Once

Your credit report mostly likely shows bumps and bruises from a short sale or foreclosure.   However, those serve and proof something occurred but not validation of exactly when the battle ended. For example, short sales are notoriously reported inaccurately on credit.   A mortgage that was short sold will show a “last reported date”.   Chances are this date is close to the short sale completion date.   Rarely are the 2 dates the same.

The same ideas hold true with a foreclosure.  Credit reports reveal which mortgage foreclosed.  However, “last reported date” is again a very poor indicator of the actual foreclosure date.  It certainly is not likely to match the date mortgage lenders consider a foreclosure completion date.

By Jeremy House



  1. mortgage was included in chp13 bk in feb 2010. in august 2010, judge approved wage earner plan and released house to lender. bank did not foreclose and transfer title until jan 2012. jobs r great…credit scores for both, just over 700….have down payment for fha loan…when would we be eligible please. thx

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