Buy Again After...

Return to Homeownership

  • Home
  • After A Short Sale
  • After A Foreclosure
  • After A Deed-In-Lieu
  • After A Bankruptcy
  • Blog
You are here: Home / General / Extenuating Circumstance: What Are They?

Extenuating Circumstance: What Are They?

May 22, 2013 By Justin McHood

If you are thinking about buying a home after going through a financial hardship, one thing that you may want to be aware of is that Underwriters will consider your situation differently if you went through an “extenuating circumstance” when you had your hardship.

If you were experiencing an extenuating circumstance during your hardship, lenders may shorten the waiting period that you have to wait after a short sale or foreclosure. In order to qualify for an extenuating circumstance, it must have been out of our control and not due to financial mis-management. In order to qualify for an extenuating cirtumstance exception with underwriting, be ready to show documentation.

Extenuating Circumstances: Examples

While there are many possible examples of extenuating circumstances, a few of the most popular extenuating circumstances include:

  • Death of a wage earner
  • Medical issues / long term illness

There are also many things that do NOT typically qualify as an extenuating circumstance – some of the popular ones include:

  • The recession / bad economy
  • Divorce (although there are exceptions to this rule if the spouse was awarded the property and all payments were made on time at the time of the divorce)
  • Loss of employment

Waiting Periods With Extenuating Circumstances

The waiting periods after a short sale for getting a mortgage if you qualify for an extenuating circumstance are:

  • FHA/VA/USDA – they are the same, these types of loans don’t take into account extenuating circumstances as a reason to shorten the waiting period
  • Fannie Mae – 2 years for 90% LTV
  • Freddie Mac – 2 years

The waiting periods after a foreclosure or Deed in Lieu for getting a mortgage if you qualify for an extenuating circumstance are:

  • FHA – Will vary by Underwriter, but is possible if you can fully document the circumstance and have proven that you can re-establish credit
  • Fannie Mae – 3 Years
  • Freddie Mac – 3 Years
  • VA – 1 Year
  • USDA – 3 Years – the same period as without an extenuating circumstance

Because there are so many different situations, if you think you can qualify for an extenuating circumstance, you may be eligible for a mortgage sooner than you think. Speak with a lender who specializes in helping people get qualified for a mortgage after a short sale and can help you in your specific situation. Get matched with a great lender today – submit your information below and get started.

Filed Under: General Tagged With: extenuating circumstance, extenuating circumstances

IMPORTANT MORTGAGE DISCLOSURES:

When inquiring about a mortgage on this site, this is not a mortgage application. Upon the completion of your inquiry, we will work hard to match you with a lender who may assist you with a mortgage application and provide mortgage product eligibility requirements for your individual situation.

Any mortgage product that a lender may offer you will carry fees or costs including closing costs, origination points, and/or refinancing fees. In many instances, fees or costs can amount to several thousand dollars and can be due upon the origination of the mortgage credit product.

When applying for a mortgage credit product, lenders will commonly require you to provide a valid social security number and submit to a credit check . Consumers who do not have the minimum acceptable credit required by the lender are unlikely to be approved for mortgage refinancing.

Minimum credit ratings may vary according to lender and mortgage product. In the event that you do not qualify for a credit rating based on the required minimum credit rating, a lender may or may not introduce you to a credit counseling service or credit improvement company who may or may not be able to assist you with improving your credit for a fee.

Copyright © Mortgage.info is not a government agency or a lender. Not affiliated with HUD, FHA, VA, FNMA or GNMA. We work hard to match you with local lenders for the mortgage you inquire about. This is not an offer to lend and we are not affiliated with your current mortgage servicer.

Contact Us | Terms of Use | Privacy Policy

Buy Mortgage Leads

Mortgage.info

NMLS ID #1237615 | AZMB #0928735

8123 South Interport Blvd. Suite A, Englewood, CO 80112

Contact Us