Going through the experience of doing a short sale of your home can be one of the most stressful situations homeowners can face. For most homeowners, doing a short sale of their home means the end of their ability to own a home loan.
There's a lot at stake. If you hope remain a homeowner after your short sale, you'll need to partner with a qualified mortgage professional for advice before making any decisions. Mortgage lending today is based on guidelines set out by Fannie Mae, Freddie Mac and the FHA. If not done properly, a short sale could prevent homeownership for 7 years. As of August 16, 2014 Fannie Mae & Freddie Mac released some of the new key criteria on short sale waiting periods for conventional purchases & refinances.
New Conventional Short Sale Guidelines
However, there is a loophole.
By establishing a long-term relationship with a qualified mortgage professional, they can be made aware of changes in your ability to make your mortgage payment and help you take advantage of short sale government programs. If done properly, having a short sale can actually be a strong financial tool for managing cashflow and homeownership. .
According to guidelines set out by FHA, a borrowers who is current at the time of the short sale is considered eligible for a new FHA-insured mortgage for a new purchase immediately after a short sale if two conditions are met. From the date of loan application for the new mortgage:
The key is to right-size the home to a smaller more manageable property before you default on your mortgage and not miss installment payments. This is because any borrower who is in default at the time of the short sale or pursued a short sale agreement on his/her principal residence simply to take advantage of declining market conditions, or purchase a similar or superior property within a reasonable commuting distance at a reduced price as compared to current market value is not eligible for a new FHA-insured mortgage immediately.
If you have any quesitons about this program or are in need of assistance for any other mortgage related topic, please feel free to reach out to me at firstname.lastname@example.org or visit my website at www.desktopapproval.com.
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