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  1. #1

    Refinance After Foreclosure

    I talk to many people who have gone through foreclosure or short sale on a 2nd home or investment property and they don't think they can refinance their primary residence till 7 years after foreclosure. That is a general rule by Fannie Mae and Freddie Mac but there are some great portfolio loan programs that can help you lower that rate and payment even after foreclosure or short sale. The best one that I have seen is a 7/1 ARM loan that has a minimum loan amount requirement of at least $300,000. The current rates that I have seen on this program are around 4.75 percent (4.88 percent APR) with a good credit score. The 5/1 ARM is even lower! If you are looking to refinance after foreclosure or short sale you don't have to wait that long. I have done one recently that was 6 months after foreclosure. Contact us and see if you qualify!

  2. #2
    Thanks for that informative post. I agree with you that there are some good portfolio loan programs out there. But I do have a question for you. How did your recent client get "a good credit score" just 6 months post FC?

  3. #3

  4. #4
    You are welcome. I helped over 8,000 clients who went through either short sale or foreclosure. Many of these clients were strategic default. With that being said, the average hit to the credit score was around 100 points and we started to see after the 1st year the credit recover 50-80 points if they paid everything else on time and paid down their credit card debt. The majority of the credit damage was done in the first 3-6 months of missed mortgage payments. The "good credit" I was referring to is around 680+ credit score. So in this situation, the person had only 1 mortgage that they defaulted on and they originally had over 760 credit score and now they are at 684. Hope that helps.

  5. #5
    Your only options is an ARM? No 15 year FRM or anything of the sort? On the credit score the day my DIL completed my FICO was already back above 700. That was with a 1st and 2nd. I believe the score actually improved after the DIL finished up because the mortgage accounts showed as closed. Shortly after I was easily able to qualify for the lowest rates on a car loan... just no mortgage so I had to go private.


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