Guideline – Foreclosure/Shortsale updates

Posted on August 10, 2009. Filed under: Guidelines | Tags: , , |

foreclosure2Beginning August 15 the following will apply for those seeking to purchase a home, using CONVENTIONAL financing, with a history that includes one of the following:


Result of financial mismanagement – 680 credit minimum, 10% down and a minimum of 5 years re-established credit (up from four).

Result of extenuating circumstances – 620 credit, 10% down and minumum of three years re-established credit.


Short Sale

Financial mismanagement – 680 credit and 4 years minimum re-established credit (10% down not required as above).

Extenuating circumstances – 2 years minimum re-established credit (no minimum down payment, no minimum credit score).


For lending questions Michael Pfeffer can be reached at 703-967-0709 or


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2 Responses to “Guideline – Foreclosure/Shortsale updates”

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What would be considered extenuating circumstances?

Tony – extenuating circumstances are those circumstances considered out of the borrowers control. Examples would be loss of employment or hurricane (as with Katrina). This is subjective to underwriting but the classification between “extenuating” and “mismanagement” are typically very clear (I phrase it this way because gray situations can arise).

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