FNMA has announced that effective with application dates on or after July1, 2010 the following guidelines will apply to borrowers with a pre foreclosure sale/short sale or deed in lieu:

Waiting Period After a Pre foreclosure Sale, Short Sale, or Deed-in-Lieu of Foreclosure

Pre foreclosure Event Current Waiting Period Requirements New Waiting Period Requirements (1)
Deed-in-Lieu of Foreclosure 4 years
Additional requirements apply after 4 years up to 7 years

• 2 years – 80% maximum LTV ratios

•4 years – 90% maximum LTV ratios

• 7 years – LTV ratios per the Eligibility Matrix
Pre foreclosure Sale 2 years
Short Sale No policy currently exists specific to short sales

Exceptions to Waiting Period for Extenuating Circumstances
Pre foreclosure Event Current Waiting Period Requirements New Waiting Period Requirements (1)
Deed-in-Lieu of Foreclosure 2 years
Additional requirements apply after 2 years up to 7 years 2 years – 90% maximum LTV ratios
Pre foreclosure Sale No exceptions are permitted to the 2-year waiting period
Short Sale No policy currently exists specific to short sales

(1) The maximum LTV ratios permitted are the lesser of the LTV ratios in this table or the maximum LTV ratios for the transaction per the Eligibility Matrix.
Bankruptcies The multiple bankruptcy policy is being clarified to state that two or more borrowers with individual bankruptcies are not cumulative. For example, if the borrower has one bankruptcy and the co-borrower has one bankruptcy, this is not considered a multiple bankruptcy. The current waiting periods for bankruptcies remain unchanged.