Foreclosures Short Sales Guidelines for Fannie Mae Conventional Mortgage loan in Kentucky
DU applies the following guidelines to prior bankruptcies
· If a Chapter 13 bankruptcy was discharged within the last 24 months, dismissed within the last 48 months, or filed but neither discharged nor dismissed within the last 48 months, the loan casefile will receive a Refer with Caution or Refer with Caution/IV recommendation and will be ineligible.
DU applies the following guidelines to prior foreclosures
If the filed date and the satisfied date of the foreclosure are both unknown, but it appears that the foreclosure occurred within the seven-year period prior to the credit report date, the lender must confirm that the foreclosure did not occur within the most recent seven-year period.
DU applies the following guidelines to prior deeds-in-lieu of foreclosure
o If a deed-in-lieu of foreclosure was reported within the two-year period prior to the credit report date, the loan casefile will receive a Refer with Caution or Refer with Caution/IV and will be ineligible.
o If a deed-in-lieu of foreclosure was reported more than two years before the credit report date, the existence of the deed-of-lieu foreclosure is acceptable provided the loan complies with the LTV ratio requirements that apply after two years and up to seven years following the completion date, as stated in Significant Derogatory Credit Events — Waiting Periods Matrix.
Pre-foreclosure Sales or Short Sales
Senior Loan Officer
Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*