Knoxville Short Sale Question: When Can I Buy A Home Again?

Signing_Warranty_DeedIn our Ask the Expert Section, we recently received a question from Javier, he asks, "I completed a short sale on my Knoxville home a year and a half ago.  My wife and I have worked really hard to get ourselves back on our feet and are ready to buy another Knoxville home. I've heard that it can take a really long time before we're able to buy another Knoxville home. How long do we have to wait prior to buying a Knoxville home again?" Javier, this is something that many Knoxville homeowners who have been through foreclosure or completed a short sale wonder about. Every situation is a little bit different. The waiting period can depend on the type of loan that is being applied for along with what the credit requirements are for the loan. Here is a chart that breaks down that explains the waiting periods for those who have experienced an adverse credit event (i.e. foreclosure or short sale)  and are buying a home loan with a conventional Fannie Mae loan:
Adverse Credit Event Waiting Period Waiting Period for Extenuating Circumstances Waiting Period Start Date Waiting Period End Date
Foreclosure 7 years 3 Years Foreclosure Completion Date Disbursement
Short Sale 4 Years 2 Years Completion Date or Execution Date Disbursement
Deed-In-Lieu Of Foreclosure 4 Years 2 Years Completion Date or Execution Date Disbursement
Here is a chart that breaks down that explains the waiting periods for those who have experienced an adverse credit event (i.e. foreclosure or short sale)  and are buying a home loan with a conventional Freddie Mac loan:
Adverse Credit Event Waiting Period Waiting Period for Extenuating Circumstances Waiting Period Start Date Waiting Period End Date
Foreclosure 7 years 3 Years Foreclosure Completion Date Application
Short Sale 4 Years 2 Years Completion Date Application
Deed-In-Lieu Of Foreclosure 4 Years 2 Years Execution Date Application
In addition, homeowners who have completed a Knoxville short sale are eligible to buy a Knoxville home in as little as a year via the FHA Back To Work Program. In order to qualify for this program, Knoxville homeowners  must have experienced an “economic event,” which includes any of the following events: short sale, deed-in-lieu of foreclosure, foreclosure, Chapter 7 bankruptcy, Chapter 13 bankruptcy, loan modification, or forbearance agreement. A homeowner must be able to document he or she have fully recovered from the “economic event.”  In addition, a homeowner must be able to show that he or she experienced lose of income by at least 20% during the “economic event,” which made it difficult for him or her to continue making payments on your Knoxville home. Are you facing foreclosure on your Knoxville home? If so,  please do not hesitate to give my team a call at 865-696-9002 or send an email to [email protected]. We’ve helped countless Knoxville homeowners avoid foreclosure. Give us a call today for a free consultation.

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