For better or worse, FNMA keeps tightening the reins on those unlucky (not so) few that are going through the foreclosure process. They announced earlier this spring that they were increasing the time period (up a year, to 5 years) that borrowers who have been foreclosed upon would have to wait to be considered to have a “re-established” credit history.

On the positive side, they will continue to allow a lesser time period to elapse (3 years, in lieu of the previous 2 year requirement) for borrowers that can demonstrate “documented extenuating circumstances” the resulted in the foreclosure action. However, believe it or not, “financial mismanagement” is not an acceptable circumstance!

Serves them right, all those folks who blindly signed on for mortgages that they knew they really couldn’t/shouldn’t afford…. or does it? With a 5 year waiting period, these individuals should have plenty of time to work on repairing their credit…

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