An applicant's credit report shows a Chapter 7 bankruptcy discharge date of exactly 2 years ago, but also shows a mortgage foreclosure with a completion date of 6 months ago. Which waiting period applies?
Correct Answer
C) The longer of either waiting period must be satisfied
When multiple derogatory events occur, the longer waiting period applies. While the bankruptcy may have a 2-year waiting period for some programs, the foreclosure typically requires 3 years, so the foreclosure waiting period would control the eligibility timeline.
Why This Is the Correct Answer
When multiple derogatory events occur, the longer waiting period applies. While the bankruptcy may have a 2-year waiting period for some programs, the foreclosure typically requires 3 years, so the foreclosure waiting period would control the eligibility timeline.
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