When are people with Foreclosures and Short Sales eligible to borrow again?

Some information from mortgage broker Solyent Green is People (an update):

For people with foreclosures or short sales on their record, the waiting period depends on if there are "Extenuating Circumstances" EC ( death in family, company relocation/shut down - about 5/10% of cases) or if the foreclosure or short sale was due to "Financial Mismanagement" FM (the majority of cases).

Jumbo loans, Foreclosure: 7 years (FM and EC)
Jumbo loans, Short Sale: 7 years FM, only 4 years EC
Fannie/Freddie, Foreclosure: 7 years FM, 3 years EC
Fannie/Freddie, Short Sale: 4 years FM, 2 years EC
FHA Foreclosure/Short Sale: 3 years (FM and EC)

BKFS Click on graph for larger image.

This graph from Black Knight shows the number of active foreclosure since 2000.

The vast majority of foreclosures were in the 2008 through 2013 period, so many of those people who lost home in the great recession are eligible to borrow again now (or will be soon).

CR Note: Even though people are eligible to borrow, doesn't mean they will. They will have to saved enough for a downpayment, and many of these people are psychological scarred (and will wait longer to buy again).

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