Fannie’s Guidelines On Preforeclosure Events
Fannie Mae has adjusted their underwriting criteria for borrowers who have experienced a “preforeclosure event.” This is for preforeclosure sales, short sales, or deeds-in-lieu of foreclosure. Starting in July, Fannie Mae has changed the waiting period after the event and based it on the loan to value for the transaction and any extenuating circumstances. In addition, Fannie is updating the requirements for determining that borrowers have re-established their credit after a significant credit event. To summarize it, the more money you put down the less time you have to wait.