Looking to refinance after DiL

[Mehul Patel]

Hello, we did a Deed in Lieu of foreclosure about 18 months ago with a property we had (no longer have obviously) Currently, we have a mortgage on our home with a higher interest rate and we've been trying to refinance. We learned that we need to wait 2+ years because of the DIL, but I had a lender tell me that some lenders may do it now so I was wondering if anyone knew about that. We have two other properties that are paid off and rented out. We would just like to get a lower rate and term on our current mortgage. It's always been paid in full, never late. there is 25 years left and the rate is 6.5.

[John Jackson]

When I'm looking at a credit report, I go with the 3 year rule that if they had a short sale, FC, or DIL, it's all the same as far as the lenders look at in the future, so most lenders look at requiring 3 years from the reported date.
However, I have heard people state that you can get financed 2 years after, but I have never seen it. If a lender DID allow finance after 2 years, the file would have to be outrageously strong and clean.