Do Lenders Approve a Mortgage After Foreclosure?
If you have a foreclosure in your credit report it takes some time before you qualify for a mortgage after foreclosure again. Fannie Mae sets few norms which the lenders are expected to follow. Usually you will not be able to take out a mortgage after foreclosure, four-to-five years from the date of foreclosure. However, this time period can be reduced to three years at the most if the borrower is able to prove to the lender that the missed payments were due to reasons that are beyond the control of the borrower. For instance, death of a homeowner is a valid reason for getting approved for a mortgage after foreclosure. Similarly, if you have relocated to a different place for employment purposes and if the house failed to get sold within a stipulated time period, you can get a mortgage approved much before the “waiting period” when you are repairing your credit rating. Lenders are expected to adhere to the standards set by Fannie Mae. If they fail to do so, they will not be allowed to
