Fannie Mae (FNMA) amended its guidelines in Announcement 08-16 to extend the amount of time an individual must wait to buy another home post-foreclosure.
Effective August 1, 2008, the new requirement will be five-years after the completion date of the foreclosure. The previous requirement was four-years.
Interestingly, FNMA added a new category to its list for a preforeclosure sale. FNMA defines preforeclosure sale as follows:
“A preforeclosure sale involves the sale of the property by the borrower to a third party for less than the amount owed to satisfy the delinquent mortgage, as agreed to by the lender, investor, and mortgage insurer. Due to the increased incidents of preforeclosure sales, Fannie Mae is establishing a 2-year elapsed time period for reestablishing credit following completion of the action.”
Sounds to me like FNMA likes short sales.