Financing in 94558>Question Details

Tracee Alves, Home Buyer in Napa, CA

After a short sale, can you purchase another home right away as long as the new loan is not more then the old loan.

Asked by Tracee Alves, Napa, CA Wed Oct 31, 2012

This does not make sense to me and I have never heard of it. Can anyone shed some light on this?

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Michael Abram’s answer

This is not accurate. Most conventional, FHA and VA lenders have a specified wait period for a short sale to be "seasoned" before considering lending a new loan to you. I do work with one lender that will consider a foreclosure/short sale on a case-by-case basis and I recently wrote a blog about it if you look at my profile. Otherwise, you are best waiting a few years before the traditional banks will consider lending to you.

Michael Abram
RPM Los Angeles
NMLS #235060
Cell: (310) 995-0975
0 votes Thank Flag Link Wed Oct 31, 2012
I have financing for 1 day after a short sale or foreclosure. See more info at my site:

Andy Brown
CFS Mortgage
0 votes Thank Flag Link Tue Apr 16, 2013
You can purchase a home 2 years after your short sale if you put 20% down.
0 votes Thank Flag Link Wed Nov 28, 2012
This subject is covered in the web reference below. If after reading it you're subject to a waiting period, those are covered here:
0 votes Thank Flag Link Wed Oct 31, 2012
Hi Tracey, I know that you must have the answer to this question since you are licensed, but I want to explain the answer anyway. You cannot purchase a home right away because the bank is looking at your actions with the loan you shorted. Normally the banks want to see a pattern of responsibility by the person who shorted the loan. Because there are so many consumers is this position the government and/or the banks may change their position at some time. Many of the answers given to you are in alignment. I believe you may find a private money investor, but the terms will not be as attractive. The wait time is usually 2-3 years. If you wish to discuss this further let me know. Lynda
0 votes Thank Flag Link Wed Oct 31, 2012
Hi Tracee,

FHA financing normally requires THREE years from the short sale; HOWEVER, IF:

1) The mortgage payments were made on time within the 12 months prior to the short sale, and

2) The Buyer is not looking to purchasing a similar or larger home in the same area as short sale; one can actually buy the very NEXT DAY after escrow closes on your Short Sale.


Conforming loan guidelines state a minimum of TWO years and 20% down; however, if the short sale was due to documentable "extenuating circumstances" (divorce, medical, job loss, death of a wage earner, etc.) then you only need 10% down.

Extenuating Circumstances "are nonrecurring events beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations."

0 votes Thank Flag Link Wed Oct 31, 2012
I recently closed a transaction here in Napa with a local lender where my client was able to purchase using an FHA loan with less than two years since a short sale. There are quite a few options for purchasing after a short sale. Here is an article covering some of those options . Feel free to reach out and I can refer you to the local lender my previous clients in this situation used.

Thank you

Mike Bolen
RE/MAX Gold Napa
Broker Associate
DRE 01747331
0 votes Thank Flag Link Wed Oct 31, 2012
The answer to this question will depend on MANY different factors. but most likely it is no.

To qualify for FHA financing immediately after a short sale, you need to have been current on your loan for the short sale among other factors. Usually people are behind on payments on the mortgage when a short sale occurs so that will then cause you to have to wait for at least 2 years for FHA financing.

If you have more questions please do not hesitate to call and we can set up an appointment to discuss your specific situation.

Thank you.

0 votes Thank Flag Link Wed Oct 31, 2012
Who told you this? It is not true. After a short sale you usually cannot get a home loan for 2 to 3 years.
0 votes Thank Flag Link Wed Oct 31, 2012
I have a friend that is doing a short sale and wants to purchase a new home once the house has sold. I explained to her that she won't qualify right away after doing a shor t sale and she told me her agent told her she can purchase as long as she does it right away and the new loan is the same or lower then the old loan.
Flag Wed Oct 31, 2012
Hi Tracee,
Short sale wait times are determined on a case by case basis .

If you made all of your payments on time previous to the short sale, I have a lender that is lending on certain mortgage loan programs .

If you missed several payments ,the standard wait time after a short sale is 2 years.

Taj Weldon
DRE 01816152
0 votes Thank Flag Link Wed Oct 31, 2012
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