Fannie Mae released a report this month, informing that there are simplified waiting periods for those distressed borrowers that have a prior derogatory credit event in their past, such as a: foreclosure, bankruptcy, preforeclosure sale (short sale), or deed-in-lieu of foreclosure.
For borrowers with a short sale or deed-in-lieu of foreclosure on their record, Fannie Mae’s new mandated minimum waiting period to become eligible for a new loan is four years…If a borrower has a foreclosure on his or her credit record, the new minimum waiting period is seven years…For those with a bankruptcy (chapter seven or 11), the waiting period is four years. (Brian Honea, “Fannie Mae Relaxes Waiting Period for Distressed Borrowers”, 17 Sept. 2014, DS News, dsnews.com/news/09-11-2014/fannie-mae-revises-waiting-period-distressed-borrowers)
In the case of extenuating circumstances, those periods are shortened.
The new policy appears to be in effect for loans with application dates on or after August 16, 2014.