Homeowners who have gone through a short sale will have to wait 4 years before purchasing another home. Although the change may seem negative at first, the longer wait time will actually benefit the homeowner.
Fannie Mae announced that as of August 16th, the waiting period will change from 2 years to 4 years for homeowners who had their house sold short. With the 2-year waiting period, the homeowner was required to put down at 20%. However, with this new waiting period, homeowners will be able to put down as little as 5% down to purchase a new home.
The 2-year waiting period will only be granted to those who can strongly prove that their financial circumstances have changed for the better and will remain that way. Fannie Mae will require heavy documents to be considered for the 2-year waiting period.
Also, on November 16th, the reporting of short sales and deed-in-lieu of foreclosure by creditors will be clarified. To read about all the changes, visit: http://www.fanniemae.com/portal/index.html