Credit After Foreclosure, Bankruptcy, or Short Sale

Credit After Foreclosure, Bankruptcy, or Short Sale: "Credit After Foreclosure, Bankruptcy, or Short Sale

One of the concerns a consumer has after experiencing a bankruptcy, foreclosure, or short sale (referred to as a 'preforeclosure sale' by Fannie Mae when the owner is in default) is the ability to obtain credit to purchase another home.� Fannie Mae has updated its credit guidelines in the FNMA Selling Guide, June 30, 2010. [ Note:�This is a 1,234 page�PDF document that takes a long time to download.]� This legal article summarizes those guidelines in Part I.� In addition, since lenders use FICO scores�in order to determine the creditworthiness of a borrower, this article covers the impact of a bankruptcy, foreclosure or short sale on FICO scores in Part II.�"