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How long until i can refinance from a short sale with 2 defaults?

its been 2.5 years approximately, i have restored my credit for the most part and would have an 80% ltv ratio by AKetch_178_782 from Kalispell, Montana. Sep 25th 2012 Reply


Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,815 contributions

If you have defaults, it is likely you will have to wait the full three years to qualify. Proving "Extenuating circumstances" is very difficult and rarely approved. My advice is to start now to find a local Mortgage Banker/Broker to work with. This way you can get your credit reviewed, clean up any little thing(s) that need done, find a home and actually close escrow the first day you are eligible. There are a few lenders that will not allow you to apply before the three years is up. You need to find a lender like NOVA Home Loans that will work with you now. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

Sep 25th 2012
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,486 contributions

FHA is 3 years, conventional is 2 years with 20% down, VA is 2 years.. Looks like you can apply now.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Sep 25th 2012
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Brady Smedsrud (BradySmedsrud)
#3 ranked lender in Montana - 17 contributions

One year for FHA if you can prove extenuating circumstances and there is evidence you have reestablished good credit since. Extenuating circumstances are nonrecurring events that are beyond the borrower's control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.If there are no extenuating circumstances then 3 years for FHA and 2 years for FHA. If you want to do conventional you will have to wait 7. Let me know if you have any questions. I work for Bank of the Rockies out of Bozeman and mainly do lending in Montana. 406-556-1800

Sep 25th 2012
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Todd Tholl (toddtholl@leader1.com)
#4 ranked lender in Iowa - 239 contributions

You should be able to apply now & get approved based on this alone

Sep 25th 2012
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,239 contributions

I would say you will have to wait about 6 more months.

Sep 25th 2012
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Janine Bodway (jbodway)
#4 ranked lender in Montana - 42 contributions

AKetch,I am sure it can be confusing to hear conflicting answers...In general the rules are the same per product, however sometimes a lender or investor can be more lenient than another to extenuating circumstances. What this means is your apllication will be individual to your situation. Why did you have a short sale, what are the facts that lead up to the short sale? This explanation will be reviewed and does play a part in the decision. Circumstances "Beyond Your Control" is what allows exceptions. As for the product, I do have options for Conventional, FHA and VA as well as a Portfolio Product which allows exceptions to the rules. In general, with no lates prior to the short sale you could refinance now, with the lates you would have to wait 2 yrs for VA, 3 yrs for FHA. I do have the ability to review your individual case after 24 mo but your circumstances need to be something serious, medical, death in family, divorce, job loss etc. You never really mentioned what type of loan you have now and there is also Rural Development which only allows a refi from RD to RD. I am curious to talk to you about your situation and what type of loan you have now which was obtained after a short sale? Much of the good advice on this column is stay away from Big Bank and online 50 state lender, they are not going to be of help to you. you need a Broker who can find you a Niche' product or Portfolio Product that allows exceptions. I am from Kalispell and can work with you if you would like.Janine 406-270-7282 jbodway@acceptancecapital.com www.janinebodway.acmchome.com

Sep 25th 2012
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