ACCORDING TO FANNIE MAE GUIDELINES THERE HAVE BEEN ADJUSTMENTS TO QUALIFY FOR PURCHASING AFTER BANKRUPTCY,DEED IN LIEU OF FORECLOSURE, PRE FORECLOSURE SALES AS FOLLOWS:


New Requirements
Action:Bankruptcy (All Except Chapter 13)
4-year time period from discharge date
The 4-year time period remains the same but will now be applied from either the discharge or dismissal date of the bankruptcy action.

Chapter 13 Bankruptcy
2-year time period from discharge date
The time period for Chapter 13 bankruptcy actions is measured as follows:
• 2 years from the discharge date, or
• 4 years from the dismissal date.
Exceptions for Extenuating Circumstances – All Bankruptcy Actions
2-year time period from discharge date. No exception to the 2 year time period for Chapter 13 bankruptcy actions.
The 2-year time period will be measured from the bankruptcy discharge or dismissal date. No exceptions are permitted to the 2-year time period after a Chapter 13 discharge.
Multiple Bankruptcy Filings
No existing policy
5-year time period from most recent dismissal or discharge date required for borrowers with more than one bankruptcy filing within the past 7 years.
Exceptions for Extenuating Circumstances – Multiple Bankruptcy Filings
No existing policy
3-year time period from the most recent discharge or dismissal date
Note: The most recent bankruptcy filing must have been the result of extenuating circumstances.
Foreclosure1
4-year time period from the date the foreclosure sale was completed (“completion date”)
5-year time period from completion date
Additional requirements that apply after 5 years up to 7 years following completion date:
• The purchase of a principal residence is permitted with a minimum 10 percent down payment and minimum representative credit score of 680.
• Purchase of a second home or investment property is not
1 The “New Requirements” were previously announced in Announcement 08-08, but additional clarification is provided here.
Announcement 08-16 Page 3
Action Current Requirements New Requirements
permitted.
• Limited cash-out refinances are permitted for all occupancy types pursuant to the eligibility requirements in effect at that time.
• Cash-out refinances are not permitted for any occupancy type.
Exceptions for Extenuating Circumstances –

Foreclosure1
2-year time period from completion date
3-year time period from completion date
Additional requirements that apply after 3 years up to 7 years following completion date:
The same additional requirements apply as above except the minimum credit score of 680 is not required.

Deed-in-Lieu of Foreclosure
4-year time period from completion date (date deed-in-lieu executed)
No change
Additional requirements that apply after 4 years up to 7 years following completion date:
• Borrower may purchase a property secured by a principal residence, second home, or investment property with the greater of 10 percent minimum down payment or the minimum down payment required for the transaction.
• Limited-cash-out and cash-out refinance transactions secured by a principal residence, second home, or investment property are permitted pursuant to the eligibility requirements in effect at that time.
Exceptions for Extenuating Circumstances –
Deed-in-Lieu of Foreclosure
2-year time period from completion date
No change
The same additional requirements noted above for deed-in-lieu apply after 2 years up to 7 years following completion date.


Action : Pre foreclosure Sale ~ Short Sale
Current Requirements
New Requirements
Time Period After Preforeclosure Sale
No existing policy
2-year time period from completion date.
Additional Requirements: None
Note: No exceptions are permitted to the 2-year time period due to extenuating circumstances.