Why you are better off with a Bankruptcy then a Short Sale

Waiting periods for new home loans with Fannie Mae:



--Bankruptcy, Chapter 7 or 11 — four years; two years with extenuating circumstances.


--Bankruptcy, Chapter 13 — two years from discharge date or four years from dismissal date; with extenuating circumstances, two years from discharge date or two years from dismissal date.


--Multiple bankruptcy filings — five years if more than one filing within the past seven years; with extenuating circumstances, three years from the most recent discharge or dismissal date.


--Foreclosure — seven years; with extenuating circumstances, three years. Additional requirements after three years and up to seven years include a 90 percent loan-to-value ratio, and the loan must be a purchase of a principal residence.


--Deed in lieu of foreclosure — two years, 80 percent maximum loan-to-value ratio; with extenuating circumstances, two years, 90 percent maximum LTV.


--Preforeclosure sale — four years, 90 percent maximum LTV; with extenuating circumstances, two years, 90 percent maximum LTV.


--Short sale — seven years, LTV ratios per the eligibility matrix; with extenuating circumstances, two years, 90 percent maximum LTV.



http://www.heraldtribune.com/article/20110312/ARTICLE/110319877/2107/BUSINESS&tc=email_newsletter
 
 
 
By the way your still open for a deficency and a second lawsuit to collect after the foreclosure, deed in lieu or short sale, unless the bank agrees to waive the deficency.   Which they  almost never do.