Health & Fitness
The Different Stages of Distress
There are different stages of distress when it comes to homeownership. Here is the breakdown of different types.
In real estate, there are several different "stages of distress" for home situations. The following is a breakdown of the different types.
Foreclosure—The home was given back or taken back by the bank for nonpayment.
Short Sale—The home was sold, but the sale price didn’t cover the amount owed; must be approved by all lenders attached to the home.
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Deed in Lieu—The home was returned to the lender in exchange for canceling the loan.
Bankruptcy Chapter 7—Debts are discharged through bankruptcy and client does not pay.
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Bankruptcy Chapter 13—Debts are paid back monthly through scheduled payments on payment plan.
In many cases, you can receive a loan to purchase a home again anywhere between 3–7 years after distressed situations. It all depends on what type of loan you are applying for (conventional, FHA or VA). All types vary and depend on what type of distressed state you were in. To give a detailed blanket answer is too hard; it depends, case by case. If you'd like more of a breakdown on a situation, please email me (phoebe@kwflagship.com) or contact me at 240-593-4128.
