There is no short answer to this question. You can certainly qualify for an FHA loan now--but you may also qualify for conventional (non government) financing as well depending on the cirumstances of the short sale. Please contact me at 707-763-7900 so I can give you a comprehensive answer to your question. You need to make sure you don't take an inferior product when you may qualify for a much better loan.
Courtney, Did you ALSO make a bid? Did your Realtor ask to be put in "back-up" position? The reason I say this is that "Short-Sales" in Sonoma County STILL take an average of 5 months to close and many a buyer gets wooed away by either a quicker close "Equity Seller" or an REO. We have one short sale at the 5 month mark but due to our super heated marketplace, they can't TOUCH the deal of our Short-Sale due to inflating home prices.
So give that a shot. We've seen WAY too many deals fall out due to Buyers moving on.
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Many of the posters clearly did not read the post. The house is not underwater--there is no short sale needed here. Are you planning on renting your current primary residence and moving into the new place, or selling your existing property? This is a very doable scenario either way, If you list your existing property for sale, I can remove it from your debt to income calculaiton and qualify you for the new house. There are other options. Give me a call and we can discuss.
Auctions are simply another marketing tool and you should be wary. Tpo begin with many are not absolute auctions in other words the Seller has the right not to accept the winning bid. Secondly nearly all auctions have a 10% buyer premium in other words if your winning bid were $100,000 you would have to pay $110,000. At an auction you will be required to make a 10% non-refundable down payment if you are the winning bid and typically close within 2-4 weeks so if you're getting a mortgage you'll want to speak to your loan officer in advance to make sure they can comply with the auction terms.... more
You need to be careful with the "Active" moniker. Here in the BAREIS system which encompasses 4 counties--the "Active" can also mean, "Continue to show" (CTS) which is really a property IN ESCROW but not "firm" as is a "pending" sale which usually means all contingencies have been removed and the property is preparing to close the escrow and become a "Sold".
We use a "Market Metrics" program which show as "Actives" not only the true "Actives" but also the "CTS" category. Also, when folks see the "Under Contract" status this could be very misleading as up to 65% of those are "Short-Sales" which take an average of 170 days to close if they EVER close! But you SHOULD be working with a Realtor by now. I know it's fun to look around at properties but beginning a long-term relationship with a Realtor who can explain the nuances of their local market is PRICELESS in your quest to buy here in the Greatest State called California.
P.S.--It's 6:30pm, my screen door is open to my office, 76 degrees today!!... more