If you hope to remain a homeowner after your short sale, you'll need to partner with a qualified mortgage professional for advice.
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 home ownership for seven 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 help you take advantage of short sale government programs. If done properly, having a short sale can be a strong financial tool for managing cashflow and home ownership.
According to guidelines set out by FHA, a borrower 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 have a manageable property before you default on your mortgage and not miss installment payments. A borrower who is in default at the time of the short sale or pursued a short sale agreement on his/her principal residence may appear as if they are taking advantage of declining market conditions. Those attempting to purchase a similar or superior property at a reduced price as compared to current market value is not eligible for a new FHA-insured mortgage immediately.
If you have any questions about this program or are in need of assistance for any other mortgage related topic, please feel free to reach out to me at drewhernandez@sent.com or visit my website at www.desktopapproval.com.
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