Financing in 85017>Question Details

Jiehfre, Home Buyer in 85017

Is it possible to purchase a short sale or foreclosure with a USDA loan? If so, are the processes in any way expedited?

Asked by Jiehfre, 85017 Sat Apr 28, 2012

I'm interested in buying a home within the next 4-6 weeks. I understand that a short sale can take months to process and doesn't always end with an offer acceptance. I'm just wondering, because the USDA loan program is federally funded, if the process takes as long to get a response and to close as it typically does. Thanks

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Hello Jiehfre,

As of June 15th the Short Sale process is supposed to become more streamline with a 30 to 45 day response. If you are the primary (1st) offer you are in the Best position.

I work with a Lender that does not look at your Credit Score and No Down Payment is required. They look at your work and payment history. Also they have AWESOME rates!

Please contact me if you would like further details regarding Short Sales, Foreclosures or Lenders..

Have a GREAT day!

Vivien L Biggs PLC
602-615-9137
Prudential Arizona Properties

Check MLS for homes on my website
http://www.realestatecore.com/
0 votes Thank Flag Link Thu May 3, 2012
1) Yes you can purchase any property (traditional sale, short sale, bank owned/foreclosure) located in the USDA Loan approve region
2) The time to complete a short sale is independent of any loan process the buyer may elect, including USDA.
3) If the Buyer's lender is experienced, USDA takes about 30-days just like most loans. If they are not experienced it might take up to 60-days to close.

Since you want to get into the house quickly I would avoid Short Sales. Given the current Hot Housing Market here in the Phoenix area, your biggest challenge will be to get your offer accepted. On houses costing less than $150,000 expect that you will have 15-20 competing offers being presented on the house you select. You will most likely need to make a number of offers before one is accepted. I now tell my buyers, don't fall in love with the house until after your offer is accepted to avoid the disappointment. It is tough out there. Good luck!

Loren Hoboy-Realtor
Central AZ Real Estate
Your Local Expert
623-688-0004
LHoboy@centralAZhomes.com
Web Reference: http://centralazhomes.com
0 votes Thank Flag Link Sun Apr 29, 2012
You can use the USDA loan to purchase any property that the lender deems as being appropriately in the geographic area for USDA. You can purchase a short sale, traditional sale, or lender owned home. If your time frame is short term, you will want to choose the traditional sale or lender owned home. I have extensive experience working with buyers that are using USDA loans and I would be happy to meet you in person or over the phone to go over the options with you. You can call me directly at 480 382 9681.

http://www.jenniemillerrealtor.com
0 votes Thank Flag Link Sun Apr 29, 2012
First, a short sale can be completed in less than 75 days. It all depends on the lender and the experience of the person negotiating on behalf of the seller. We have closed them in less that 75 days. Next, in order to present an offer to the Seller, you need to obtain a pre-qualification from a lender. Make sure that the lender actually has completed USDA loans in the past. Once the Seller's lender approves the short sale and the Seller agrees to the terms, it will probably take about 45 days to complete the transaction. If you have any other questions, please do not hesitate to contact me.
0 votes Thank Flag Link Sat Apr 28, 2012
Hi there,

You've asked 2 questions. It is possible to purchase a short sale or foreclosure with a USDA loan. You will have to meet certain household income eligibility requirements and the property will have to be located in a USDA eligible geographic area. There are other requirements, one of which is that, you cannot own any other property at the time you close on the purchase.

To answer your 2nd question, your loan will concern the PURCHASE portion of the transaction. The status of the property - short sale or foreclosure, is the SELLING portion of the transaction. The selling portion will be driven by the lender, who either owns the loan on the property (short sale) or owns the property (foreclosure). Unfortunately what type of loan you use to purchase the home will not expedite their process.

Hope that helps answer your questions,
Catherine
0 votes Thank Flag Link Sat Apr 28, 2012
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