The Economic Collapse of 2008 wreaked havoc on everyone's lives.  Many people lost everything financially.  Here's a guide to assist those whom experienced difficult times during this crisis by facing either a Foreclosure, Deed in Lieu of Foreclosure, Bankruptcy and/or Short Sale.  For a downloadable version, then click here.


VA Loans:

Foreclosure, Deed in lieu of Foreclosure, Bankruptcy Chapter 7

Foreclosure: Home was given back to the lender — No owner participation, done with legal proceeding.

Deed in Lieu: Home returned to lender in exchange for canceling loan.

2 years from date foreclosure completed and transferred back to lender.

1 - 2 years from date foreclosure completed and transferred back to lender if credit re-established and paid as agreed and was caused by acceptable extenuating circumstances such as medically related loss of employment, prolonged strikes, medical bills not covered by insurance. Divorce does not qualify.

*Please note that the fact that a home loan foreclosure or deed-in-lieu of foreclosure exists in an applicants history does not in itself disqualify the loan.

Short Sale

2 years from date foreclosure completed of short sale a minimum credit score of 620

Under 3 years if borrower had no late payments on any mortgages and consumer debts within the 12 months preceding the short sale; AND, they are not taking advantage of declining market conditions to purchase another home; AND, the proceeds from the short sale serve as payment in full.