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short sale

by Jason Dalum from Hugo, Minnesota. Mar 1st 2012 Reply


Steven Brand (stevenbrand)
#2 ranked lender in Minnesota - 110 contributions

yes please.

Mar 1st 2012
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Hey All, Sorry...I hit enter too quickly. This is Jason D. I did a short sale a year ago and I am looking to see if I can buy again in 6 months. I was never late on my payments. Any options, or am I stuck?

Mar 1st 2012
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Deb Muelken (deb@debthemortgagelady.com)
#31 ranked lender in Minnesota - 5 contributions

Jason, our shop is in St Paul MN,and we have been successful at getting these situations approved, when there was not a late payment. It is restrictive, but, it can be done. Happy to answer any further questions or concerns that you may have! Thanks, Deb - The Mortgage Lady

Mar 1st 2012
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,960 contributions

Short-sale??? Selling question? Buying Question? Call me at (651) 552-3681 or visit www.MNBestRates.com

Mar 1st 2012
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Dan Eveland (daneveland)
#20 ranked lender in Minnesota - 15 contributions

depends...

Mar 1st 2012
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Sherri Sherpy (SherriSherpy)
#9 ranked lender in Minnesota - 9 contributions

Or not....

Mar 1st 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

??? WilliamAcres.com

Mar 1st 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Ok.. there is an FHA product that will allow a borrower who did a short sale to purchase right after... there are some pretty strict guidelines, and you can not be taking advantage of the market, but there is a loan out there.. Contact a local mortgage broker, not a bank, and apply with them.. they have access to numerous lenders, and not ever lender offer's this purchase program, so the broker can find you the lender that does... WilliamAcres.com

Mar 1st 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

As you can see, there may be an exception available for you under FHA. Contact a local Mortgage Banker/Broker, rather than one of the big banks. Unlike a bank employee, who is most likely just an order taker, a probably won't give you the time of day once you tell them you had a short sale, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, He/She is trained to take a look at the various different options, including situations such as you find yourself in and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Mar 1st 2012
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Charles Dailey (Charles_Dailey)
#32 ranked lender in Minnesota - 17 contributions

Here's a link that may help: http://iloanhomemortgage.com/uncategorized/buying-after-a-short-sale-is-an-excellent-mortgage-credit-risk/. There are 3 other articles on this topic that will also help along with a video that may also help (if you're able to get over the fact that I recorded it after what was no doubt the worst hair cut I've ever had in my life). These articles are kind of nerdy so if you're looking for a quick answer, the answer is that your probably eligible. If you did a short sale and the loan against the property sold short was an FHA loan, you'll be in trouble. I very much doubt that is was though because FHA still stupidly requires people to be 30 days late in order to get approved. Assuming that it wasn't since you didn't have any late payments, you would EITHER need to buy a home outside of a reasonable commuting distance from the previous property (which is so vague that it basically means relocating) OR buy something that could reasonable be construed as "buying down in housing." For instance, if you sold a property short that had 4 bedrooms and 3 baths with 2800 square feet and was built in 1998 and then bought a 3 bedroom 2 bath house with 1800 square feet built in 1974 you'd be ok. But, if you bought something "similar or superior" to what you previously sold short, the loan would get denied (unless of course you're relocating). I will add that just because a purchase price of the new property might be less than the sale price of your short sale, that doesn't mean that you've taken a step down in housing. It needs to meet the other parameters. Here's another factor (if you aren't already sick of them), you will have to prove that in your short sale the lender not only settled for less than the amount due but also waived their right to a deficiency judgment: http://en.wikipedia.org/wiki/Deficiency_judgment. If they didn't, the loan won't get approved because the potential for this judgment is so large of a contingent liability that it could affect your capacity to repay your new loan. In my opinion, these should be banned as they are in California but they're still allowed in Minnesota for some dumb reason.I hope this helps and congratulations on staying current on your mortgage during your short sale. That isn't easy since first of all you're under a recognized financial hardship and second of all, usually the loan servicer doesn't take your monthly payments in the usual way and you have to sometimes fight them to take it and post it on time. Nice work there.

Mar 1st 2012
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