HELOC After Foreclosure
Had a foreclosure, short sale or deed-in-lieu? At least one HELOC we offer can work 5 years after a foreclosure, and another counts 4 years after a short sale or deed-in-lieu.
What a HELOC after foreclosure requires
Each item below is a requirement or rule of at least one HELOC we offer.
- No foreclosure started or completed on a first mortgage in the last 5 years, at one program.
- No pre-foreclosure or foreclosure status filed on the home you are borrowing against.
- At another program, 7 years after a foreclosure.
- At that program, 4 years after a short sale, deed-in-lieu or mortgage charge-off.
- The wait runs from the completion, discharge or dismissal date to the date the new loan funds.
- A written letter of explanation, and credit that has been re-established since the event.
Five years at one program
Short sales count sooner
The clock starts at completion
Extenuating cases reviewed
Rebuilt credit matters
Not every program says yes
Can You Get A HELOC After A Foreclosure?
Yes, once enough time has passed. The wait depends on the event and the program.
A past foreclosure does not have to block a HELOC forever. At least one HELOC we offer looks for no foreclosure started or completed on a first mortgage in the last 5 years, and no foreclosure status filed on the home you are borrowing against.
Another program waits 7 years after a foreclosure and 4 years after a short sale, deed-in-lieu or mortgage charge-off, counted from the completion date to the date the new loan funds. For a first mortgage after a foreclosure, see mortgage after foreclosure.
Some rules are stricter. At least one program will not approve or consider a past foreclosure, deed-in-lieu, short sale, short payoff or mortgage charge-off at all. At the program with the 7-year wait, documented extenuating circumstances can shorten some waits, and you will explain the event in writing.
Why use Saxton for a HELOC after foreclosure
This page is for homeowners with a past foreclosure, short sale or deed-in-lieu who want to know when a home equity line is possible again.
Five Years At One Program
At least one program looks for no foreclosure on a first mortgage in the last 5 years.
Short Sales Count Sooner
At another, the wait is 4 years after a short sale or deed-in-lieu.
Clock Starts At Completion
The wait runs from the completion date to the date the new loan funds.
Extenuating Cases Reviewed
Documented extenuating circumstances can shorten some waits at that program.
Rebuilt Credit Matters
That program also wants credit re-established since the event, plus a letter of explanation.
Limits Stated Up Front
At least one program will not consider a past foreclosure or short sale at all.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about getting a HELOC after a foreclosure or short sale.
At least 5 years at one HELOC we offer, measured by no foreclosure started or completed on a first mortgage in that time. Another program waits 7 years.
At least one program waits 4 years after a short sale, deed-in-lieu or mortgage charge-off.
At least one program counts from the completion, discharge or dismissal date of the event to the date the new loan funds.
At least one program allows shorter waits for a documented, nonrecurring event outside your control, such as the death of a primary wage earner or a reduction in workforce.
At least one program requires a written letter of explanation and proof that your credit has been re-established since the event.
Yes. At least one program will not approve or consider a past foreclosure, deed-in-lieu, short sale, short payoff or mortgage charge-off.
At least one program looks for no foreclosure proceeding started on a first mortgage in the last 5 years, so a started proceeding still counts there.
Find out what you qualify for
Tell us the date of your foreclosure or short sale and we will show you which HELOC waits you already clear.
Get Pre-Qualified- Consumer Financial Protection Bureau, home equity loan compared with a HELOC
- Consumer Financial Protection Bureau, mortgages
Loan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.