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purchasing after short sale

by DrewHernandez from Chino Hills, California. Sep 9th 2015 Reply


William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

More info needed, but in general, there are mandatory waiting guidelines which vary depending on which loan product your going for.. For example, with FHA, there can be no waiting period at all, a minimum of 1 year, or a minimum of 3 years.. it all depends on your specific scenario.. with conventional, it can be 2 to 4 years, and for Jumbo, it can be as long as 7 years.. If you want to know for sure exactly what you qualify for, then the best advice I can give you would be to contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Sep 9th 2015
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Jesse Stroup (jessestroup)
#199 ranked lender in California - 591 contributions

It can be done! You may have two options when purchasing after a short sell, conventional and FHA. FHA loans allow you to purchase after a short sell as long as no payments were late and no notice of default was issued, other guidelines and overlays may apply. If you were behind in payments and a NOD (Notice of default) was issued you will have to wait up to 3 years of the completion date. Conventional guidelines can be more restrictive after and short sell. Per most lenders conventional allows you to purchase after two years with 20% percent as a down payment, other investor guidelines and overlays may apply. Jesse StroupCalifornia Mortgage Professional www.CaliforniaHomeLoanLender.comNMLS# 6229

Sep 9th 2015
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Sara Deere (SARAinMO)
#1 ranked lender in Kansas - 504 contributions

This information comes directly from the FHA guidelines. A local mortgage lender in your area will be able to state whether the traditional 3 years after the short sale, after one year is also possible depending on several factors, and it is possible one day after the short sale in certain states. The guidance in this FAQ is effective for case numbers assigned prior to September 14, 2015. When a previously owned property was sold for less than what was owed (short sale), borrowers are considered eligible for an FHA insured mortgage if, as of the loan application date, all mortgage and installment debt payments were made within the month due for the twelve months preceding the short sale. Borrowers that were in default at the time of the short sale (or pre-foreclosure sale) are not eligible for three years from the date of the sale. Borrowers who sold their property under the FHA pre-foreclosure sale program are not eligible for three years from the date that FHA paid the claim associated with the pre-foreclosure sale. Lenders may make exceptions for borrowers in default at the time of short sale if o The default was due to circumstances beyond the borrower's control (such as death of a primary wage earner, long term uninsured illness, etc.); and o The credit report reflects satisfactory credit prior to the circumstances (beyond the borrower's control) that caused the default. Borrowers who pursued a short sale agreement on their principal residence to take advantage of declining market conditions and purchase a similar or superior property within a reasonable commuting distance are not eligible for a new FHA insured mortgage. ML 09-52 http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee Handbook 4155.1: 4.C.2.l http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsghREFERENCE ML 09-52: Handbook 4155.1: 4.C.2.lREFERRAL LOCATION DISCLAIMER All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Sep 9th 2015
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Mark Hemingway (SFSLend)
#1 ranked lender in Colorado - 569 contributions

It really depends on the time since the shot sale . FHA has shorter time periods versus conventional But there are other criteria that has to be reviewed and digested when your credit and information is run thru the automated systems for Conventional or FHA. Definitely speak to a loan officer that is licensed in CA for a more detailed analysis.

Sep 10th 2015
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