What Happens to People’s Credit after …

Chapter 7 or 11 Bankruptcy: no loans available 4 years after discharge
Chapter 13 Bankruptcy: No loans for 2 years/4 years from dismissal
Multiple Bankruptcies: No loans for 5 years if more than 1 filing in past 7 years
Foreclosure: 7 years calculated from sheriff’s deed
Short Sale: 2 years if the loan to value (LTV) is 80%
4 years if the LTV is 90%
7 years if the LTV is greater than 90%

These are the credit underwriting guideline for Fannie Mae. The waiting period for FHA is not as strict but there are definite penalties.

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