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CAIVRS waiting period after an FHA foreclosure

CAIVRS Waiting Period After FHA Foreclosure

The Question

The CAIVRS waiting period is important if you had a FHA mortgage on a home that was lost to foreclosure, deed in lieu of foreclosure or short sale.

That is the subject of a great question I received this week from Jennifer in Tennessee.

Could you please tell me when the 3-year CAIVRS countdown starts? 

Is it when the Sheriff’s Deed is recorded after the Sheriff’s sale, or is it when the bank re-sells the home.  I ask because our bankruptcy was in 2011, foreclosure ended and sheriff’s deed was recorded 4/16/14. 

However, the home wasn’t re-sold for another 2 years (August 2016).  We are in the middle of a contract and don’t want to lose this home.  I’m really hoping that the 3-year period starts after the Sheriff’s Deed is recorded.  Thank you!  Jennifer in Tennessee

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The Answer

CAIVRS is a Government database that tracks credit delinquencies and default on Government debt.  If you experienced a foreclosure, short sale or deed in lieu of foreclosure on a FHA mortgage, your waiting period before being eligible for another FHA mortgage is determined by CAIVRS, and not the foreclosure or resale date.

FHA normally requires a 3 year waiting period from a foreclosure.

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When the foreclosed mortgage was a Government insured FHA loan, the waiting period begins from the date that the mortgage insurance claim is paid to out to the lender who held the FHA loan that defaulted.

The mortgage insurance claim is paid out after the foreclosing lenders submits the claim to the Department of Housing and Urban Development (HUD).  This is where it can get tricky.

Since the waiting period begins from the date that the insurance claim is paid, the 3 year clock does not start until after the foreclosing lender submits the claim.  If the lender delays submitting a claim, this could delay your FHA waiting period

CAIVRS is not directly accessible to consumers so you may need the help of a FHA approved lender to determine when you will be eligible for a new FHA mortgage.

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Avoid the CAIVRS Waiting Period

You can avoid the CAIVRS waiting period by not using a FHA mortgage to buy a new home.

If using a Conventional mortgage, the waiting period begins from the date of the Sheriff’s sale or the date that your name is removed from title as the owner of the home.  You do not ever have to wait until the bank sells the home to a new owner.

In Jennifer’s scenario above, the mortgage was included in a bankruptcy and she could be eligible for Conventional financing after 4 years from the bankruptcy discharge date.  Here is the Fannie Mae underwriting guideline that would allow you to avoid CAIVRS completely after a bankruptcy.

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Foreclosure and Bankruptcy on the Same Mortgage

If a mortgage debt was discharged through a bankruptcy, the bankruptcy waiting periods may be applied if the lender obtains the appropriate documentation to verify that the mortgage obligation was discharged in the bankruptcy. Otherwise, the greater of the applicable bankruptcy or foreclosure waiting periods must be applied.

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About Your Expert

Scott Schang

A 20 year veteran of the Mortgage and Real Estate industry, I am passionate about educating and empowering consumers. I have been writing about consumer protection issues, and making sense of complicated real estate and mortgage topics on this website since 2007

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  • Lucy says:

    Hi Scott,

    We are supposed to be closing an FHA loan in NJ this Friday. However, our Broker who has been wonderful this far is starting to worry. We had a short-sale in September 2017 afternoon missing several mortgage payments (my husband was diagnosed with cancer/immediate surgery, 8 months of chemo and 5 months disability). We worked with the bank best we could and took a very low offer on the home. In January 2018 we started an agreement with them to pay down part of the short-sale loss. We have been renting and paying everything on time and my husband has a high salary as a physician and low DTI. Everything was looking fine until they saw that we had 3 months of missing mortgage payments before the short sale.
    Now I’m asking my lender what we should do as we have almost 30,000 in escrow and inspections, etc. but not hearing back. It’s a Friday and I know nothing will happen over the weekend. Do we have a shot at closing next friday with all of the documentation showing illness/disability? Ps: illness was diagnosed 4 months before the missed mortgage payments. We burned through our savings trying to stay on top of the mortgage and Kept in close touch with the bank asking for loan modifications and forbearance which was denied.

    Thanks so much,


    • Scott Schang says:

      Hi Lucy, honestly, I don’t see how you would be able to close this using FHA. The waiting period to use FHA after a short sale is 3 years. The only way to reduce that waiting period is by getting an Extenuating Circumstances Exception. This is where it gets tricky. FHA only considers death or permanent disability of a borrower as a financial hardship that would allow the exception.

      That said, I would try to convert your loan to Conventional, which is more lenient with temporary hardship like what you experienced. You’re not hearing from the lender because the answer is not what you want to hear…..they screwed up big time. This is a pretty bad mistake not factoring in the short sale and allowing you to go into escrow on a new home.

      I would try the conventional route.

      I hope this helps?

  • Suzanne J Platt says:

    Hey Scott, my name is Suzanne and I would like to get some information on a FHA short sale that closed in January 2016. I know I have to wait 3 years to apply for another FHA loan but I do not know when my actual start date for the 3 years begins. I have know idea when the lender put the claim in to FHA or when FHA paid the claim and closed the case I called the mortgage company and they said they do not have that information, I tried to get a live person at FHA to help and they could not give me any information??? I was wondering if you could possibly point me in the right direction or know who I could contact???? Typically how long after you did a short sale does the lender have to put a claim in and how long typically does this process start??? Do they have guidelines/deadlines to follow so these cases do not linger????

    • Scott Schang says:

      Hi Suzanne,
      My experience has been that FHA is giving CAIVRS waivers based on 3 years from the actual foreclosure date, and not waiting until the payment of the mortgage insurance claim.

      A lender that is experienced with these guidelines and look up CAIVRS for you, as well as public records to determine the date that title transferred out of your name (foreclosure date).

      I’ve seen CAIVRS waived in a couple of hours to a couple of days, max.

      What State are you trying to buy in? I can introduce you to someone that has a lot of experience with these guidelines.

      Hope this helps?

  • Liz says:

    Hi I’m 1 week away from closing. Last week my my lender called to say that my house I included in my chapter 7 bankruptcy in 2013 was foreclosed in November 2017 in New Jersey. I’ve lived and have been renting in Florida since 2025. I never lived in the home since 2013 and I actually rented from 2013-2015 as I was going through a divorce and was on social security disability due to a major illness at the time. She said she checked everything prior to my preapproval knowing my bankruptcy history and nothing showed up. Now I’m $1500 out of pocket on HOA fees, lender inspections, my inspection plus my escrow and I have not heard anything from her. She said they are going to fight the the 3 year FHA wait as I showed proof of not living there utilities bills, payments, etc. My ex husband filed separately and he lives in NJ still and he never received foreclosure paperwork either. It doesn’t show up on my credit. In your opinion what are my options if any. It’s been radio silence from my realtor and lender after trying to reach them both. I had my HOA approval yesterday which they told me they needed ASAP. I feel like they are ignoring me. May 10, 2019 is my closing. Everything else is complete but the financing. My credit is good my DTI my job etc. they sent my closing fees interest rate etc about 3 weeks or more I signed the purchase & sale on
    4/3/19. On a side note the house in question in NJ was s conventional loan. Is there still extenuating circumstances rule or FHA back to work! I think it’s odd they won’t respond.Thank you for any information.

    • Scott Schang says:

      Hi Liz, I’m so sorry to hear this. Unfortunately, your loan officer screwed up because they don’t have experience with these guidelines. Your mortgage or foreclosure would not show up on your credit because they were included in the BK. Bankruptcy does not mean you are not responsible for making payments on your mortgage, or that you do not own the home. It simply means that you will not get “double dinged” for any subsequent default. Basically, the bankruptcy reports on your credit, but nothing after that.

      You will not be able to get around FHA’s waiting period. I’ve done hundreds of these, and never once heard of an “exception”.

      This is not the end of the road though! A conventional loan using Fannie Mae guidelines will allow you to use the bankruptcy waiting period of 4 years (from the discharge) and ignore the subsequent foreclosure.

      Not all loan officers know this, and not all lenders will allow it, even though Fannie Mae allows is. I have a lender friend in NJ that has experience with these guidelines and can help.

      You lender and realtor went radio silent because they screwed up. I have your email, I am going to introduce you to a friend of mine in NJ that can help. I’ll copy and paste your question here so he’s up to speed when you talk to him.

      Hope this helps?

  • Jonathan Covington says:

    Okay I had a forclosure via va in 2015 I have to public records that show the home was put to auction and purchased by the bank. I filed a chapter 7 in 2017 which included the forclosure what is my waiting period to qualify for an fha? Strictly pertaining to the forclosure. thank you

    • Scott Schang says:

      Hi Jonathan, the FHA waiting period is 3 years from the date your name was removed from title for the foreclosure, which puts you at 2018 for the foreclosure waiting period. FHA also has a 2 year wait from the discharge of a Chapter 7 BK. You should be eligible for FHA financing as soon as you hit that 2 year mark this year.

      If you need an introduction to a loan officer that has experience with these guidelines, shoot me an email to scott@findmywayhome.com and let me know what State you’re in!

      Hope this helps?

  • Shawna Armstrong says:

    Hi Scott! Need desperate help. We had a foreclosure on a Conventional loan. The deed officially was reassigned to the mortgage company in July of 2015. So I thought that we were good to get a FHA loan since 7/18. But it is reporting on our credit report as the foreclosure closed date being 4/16. When is the 3 yrs from? How do we go about getting around the fact the credit reporting is flagging us with lenders as not being 3 yrs out?

    • Scott Schang says:

      Hi Shawna, this isn’t difficult for an experienced loan officer to figure out. The waiting period will officially begin on the day that your name is removed from title. This “chain of title” is public record, so it can be discovered pretty easily.

      If the deed was reassigned to the mortgage company in July 2015, then you should be fine. Shoot me an email to scott@findmywayhome.com and let me know what State you’re in? I’ll introduce you to a lender friend of mine that has experience with these guidelines and knows what to look for.

      Was there a bankruptcy filed prior to the foreclosure by any chance?

      Hope this helps!

      • Shawna Armstrong says:

        I am in Las Vegas, NV.
        The foreclosure was in Mesa County, CO.
        I looked up the deed on the county website to find the date.
        When I have applied, the loan officers have said that my loan request is coming up flagged as “referred” through 2 different credit unions. So I tried with an online loan deal and the guy said that it is coming back flagged because my foreclosure is reporting as Feb 2016. I hadn’t really paid much mind to the dates of reporting on my credit report because I thought that it was the deed that mattered. When I went to check – it is different (with Ditech’s credit report update ranging from foreclosure close date of 2/16 to 4/16 across the 3 different credit agencies and my husbands and my reports).

        • Scott Schang says:

          Credit reports can be updated to reflect the accurate date. I’m surprised that they tried to get an approval if it was reported in 2016. You would not have ever received an approval if the credit report is reporting wrong. Would you like to talk to my friend that is licensed in NV? I have your email, I can introduce you to Mia by email.

  • Nicole says:

    Hi Scott,
    If a home is put into foreclosure and the owners of the home pay off the late payments and retain the home and the home is then removed from the foreclosure process, when does the three-year foreclosure wait period officially end for those homeowners? Does it end three years from the day all of the late payments were received by the bank? I have been told that even though the home was never sold in foreclosure since the foreclosure process was initiated by the bank, it still counts as a foreclosure on our credit. Is this true? Also, after the three-year waiting period passes, will FHA still require documentation of the circumstances that led to foreclosure before they will approve a new home loan?

    • Scott Schang says:

      Hi Nicole, if you live in a State with a redemption period, I do not believe that expunges public records of your foreclosure event. I would definitely make some phone calls before saying that you have to wait, but I’m 99% sure you’re waiting.

      FHA is a 3 year wait. I would definitely talk to your lender, or I can introduce you to someone, and talk to them about manual underwriting options. The DTI is a little more strict, but it will allow an underwriter to take a closer look at the overall file, instead of just what the guidelines imply.

      Under no circumstances should a lender ask you to document the circumstances that led up to the BK, but you will be asked for the petition, the discharge, and the notice to creditors.

      If you’ve met the waiting period, you’re good to go. Nothing else to worry about.

      Hope this helps?

      • Nicole says:

        Hi Scott,

        Thank you so much for your prompt response. Yes, we have waited over three years. We are planning to sell our house now and we were just trying to figure out if will be able to qualify for an FHA loan on our next home, or if FHA will require documented information explaining the circumstances that pertained to the previous foreclosure. We live in Southern California. We didn’t have a bankruptcy so there was no discharge or notice to creditors. However, foreclosure was initiated and it ceased when we paid off the late payments to the mortgage company. It has been approximately 3 1/2 years since we paid off the delinquent payments. Thank you again for taking the time to respond to me. I’m truly grateful.

        Best regards,

        • Scott Schang says:

          Hi Nicole, well, you’re in luck! My company, BuyWise Mortgage is in Southern California – that means I can go to my underwriters and get this figured out for you. I think you should be fine, and would feel a million times better if you are ok with my team looking into this for you. I’ll shoot you an email so you have my direct contact information. Let’s chat more about this. First and foremost, let’s make sure you qualify for the new loan before thinking about selling the old one 🙂

  • Eva Irons says:

    Hi Scott! I too have sent you an email, I hope you will be able to give us some advice. Thank you in advance!

    • Scott Schang says:

      Hi Eva, I answered your email! I normally post the question and answer here so that others can benefit too, but your situation is very unique and quite personal, so please refer to the email 🙂

      Hope this helps?

  • Cathy Hamiy says:

    Do you finance in Alabama. I am going through trying to get a CAVIRS removed. I am at the 3 years and 1 month from the time of seed transfer It has been a nightmare trying to get an answer or even communication from them. What are my options

  • Joan Marie says:

    Hi Scott, sent you an email in your box Hope you will respond