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I had to short sell but not because I couldn't keep up with payments - why can I not get a mortgage sooner?

Being told I have to wait FOUR years before I qualify again when I short sold in the first place because I got a divorce and my ex got messy. It was a necessary knee jerk move to do the short sale but I can more than prove I kept up with payments etc just fine. Can this count as an extenuating circumstance so I can get a mortgage faster - seems unfair in this instance by k.silberstein7856... from Lexington, Massachusetts. Jan 19th 2015 Reply


Richard Shapiro (RShapiro)
#12 ranked lender in Massachusetts - 71 contributions

As Ken said there are options, but you should meet with someone to discuss and see how these time frames fit it with what you are trying to do with a purchase. I am local to you. Thanks

Jan 19th 2015
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Kenneth Kopper (KenKopper)
#19 ranked lender in Maryland - 542 contributions

What type of financing programs are you looking to qualify for and on what type of loan did the short sale occur? FHA is 3 years for a short sale but will allow for exceptions. Fannie will allow for 4 years with a 10% down payment and 2 years from completion of short sale with 20% down payment.

Jan 19th 2015
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Derick Condron (rightstartoregon)
#32 ranked lender in Oregon - 598 contributions

There are some programs out there that will allow for less time. Depending on if you went late prior to the short sale as well as how much you have for a down payment.Contact a local mortgage professional and discuss your options.

Jan 19th 2015
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Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

Do you own a business? I can do business loans, lines of credit for good and marginal credit The short sale will not be a issue. HOW long has it been?? linda yourloanpartnerforlife@live.com

Jan 19th 2015
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Unfortunately, if you were able to make the payments, but opted to do a short sale in stead, then no extenuating circumstance would be allowable... typically for conventional financing, an extenuating circumstance might be acceptable for someone who had a catastrophic event that affected them financially.. someone got real sick or injured and the medical bills were overwhelming.. or one of the income earners passed away.. but in your scenario, you say that you COULD make the payments but chose to do a short sale instead.. sadly, your the type of borrower that makes lenders cringe.. you had the means to make the payment, but chose not to.. FHA allows for a purchase immediately after a short sale so long as the mortgage payments as well as all your other credit payments were made on time and you had no 30 day late's on any obligation. To qualify for this loan, you have to have a story that make sense.. and a divorce is not an acceptable reason.. FHA allows for a purchase 12 months past a short sale so long as you can prove a 20% reduction in income, and it was that reduced income that resulted in a short sale.. other wise, FHA requires 3 years post short sale.. Conventional allows for 2 years with an acceptable extenuating circumstance, otherwise, it's 4 years.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jan 20th 2015
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