Financing in Elk River>Question Details

T, Home Buyer in Elk River, MN

How many years do you have wait after a short sale.?

Asked by T, Elk River, MN Sat Apr 28, 2012

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2 years for a short sale unless you completed it pre-sheriff sale while current on payments. Then FHA allows you to buy immediately. If that scenario happens then congratulate yourself on being in the 1% who were able to do it.

Even then with all the overlays and FHA changing their guidelines right now it would be extremely rare for someone to buy with TRADITIONAL financing right after a short sale. Best way to know is talk to an experienced loan officer (hint they are not all the same).

Even with the 2 year time-frame that is just ONE guideline... your credit profile still needs to improve obviously.

You can always look at non-traditional financing like a lease/option or land contract. You can always set the terms in your favor, and as long as you have a game-plan with a loan officer qualify in 3+ years into traditional financing.

It takes a specific buyer though to fit that bill, but if you ever have any questions feel free to contact me directly through Trulia.
1 vote Thank Flag Link Sat Apr 28, 2012

I'm pretty sure your questions will be comprehensively answered on this in the attached web reference. Either in the article, the video or one of the 130+ responses (and relevant links in the responses). It covers everything regarding waiting periods for different types of loans, buying immediately using FHA (for VA you'd have to see my main website - I just put that article up), what constitutes extenuating circumstances. . . . the works. It's a lot to read through but the answers are all well documented. If it gets thick, just call or email me and we'll go through it. I'm just down in St. Paul.
0 votes Thank Flag Link Sun Apr 29, 2012
Great question! The answers that have been given below are absolutley correct and I concur. Different circumstances prevent us from giving an absolute answer. I have had people buy in as little as 18 months after
completing a Short Sale, but have had others that will need longer to reestablish their credit and current finances. Local banks & Credit Unions have been good lending sources for those with a Short Sales reported on their credit reports. If you have improved your credit rating and have a history with a financial institution exceptions are possible. I hope to see more options made available to those who have experienced a Short Sale as the economy has been a large participant in the cause.
Hope this helps:)
0 votes Thank Flag Link Sat Apr 28, 2012
I agree with Suzanne. Many things depend on the circumstance but what is the general rule of thumb is 2-3 years if you kept up on all of your other bills (reestablished credit).

Lenders look at a short sale as an attempt to pay off debt in a bad situation that is not preventable

Short sales are a "part" of the economy in the last couple years. If you need help deciphering this you are free to email

I have a lender that can sort through this for you with a program called Path 2 Buy. We will look through your credit history and give you options.

Local professionals T!
0 votes Thank Flag Link Sat Apr 28, 2012
The answer is, it depends. Were you current on the payments when the home sold? The rule of thumb is two years but under certain circumstances the time frame can be shorter or longer. The best thing to do is to talk to a local mortgage banker about the specifics of your particular situation. The loan officer will look at ALL the circumstances and tell you whether you can qualify today and if so for how much. If not today, they will tell you what you need to do to improve your situation so that when you ARE ready you will have all your 'ducks in a row' and be in the best position possible.
0 votes Thank Flag Link Sat Apr 28, 2012
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