Fannie Mae announced a reduction in wait time for some borrowers between when they complete a deed-in-lieu of foreclosure transaction and when they can obtain a new mortgage. Previously, a borrower waited four years before getting a new mortgage. Under the new guidelines, a borrower that previously completed a deed-in-lieu of foreclosure can get a new mortgage in two years with a 20% down payment. If the borrower has a 10% down payment the waiting period is still four years. In some situations, the waiting period can be reduced to two years with a 10% down payment after a deed-in-lieu of foreclosure.
Tisha Black Chernine, Esq.