Financing in 95818>Question Details

Jandims8, Home Buyer in Sacramento, CA

Loan after short sale

Asked by Jandims8, Sacramento, CA Tue May 8, 2012

We completed a short sale 13 months ago due to a job transfer. Our credit has not fully repaired as we were in the 800's and are now in the 670-700 range. I have been told lenders will consider a loan after 24 months and/or 36 months. We do have a VA loan as an option (at some point), but again not exactly sure what our actual options are. We did miss three payments, not because we financially had to, but because we were told Bank of America wouldn't talk to us otherwise. We would love to buy in 6-10 months. Any advice? -Jm

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CJ S’s answer
Hello,

I read through this and it really amazes me how so many lenders/underwriters act like lawyers.

The HUD guidelines state:

A borrower is not eligible for a new FHA-insured mortgage if he/she pursued a short sale agreement on his/her principal residence simply to
• take advantage of declining market conditions, and • purchase a similar or superior property within a reasonable commuting distance at a reduced price as compared to current market value.

Borrower Current at the time of Short Sale
A borrower is considered eligible for a new FHA-insured mortgage if, from the date of loan application for the new mortgage, all
• mortgage payments on the prior mortgage were made within the month due for the 12-month period preceding the short sale, and
• installment debt payments for the same time period were also made within the month due.

Borrower in Default at the time of Short Sale
A borrower in default on his/her mortgage at the time of the short sale (or pre- foreclosure sale) is not eligible for a new FHA-insured mortgage for three years from the date of the pre-foreclosure sale.

Note: A borrower who sold his/her property under FHA’s pre-foreclosure sale program is not eligible for a new FHA-insured mortgage from the date that FHA paid the claim associated with the pre-foreclosure sale.

Exception: A lender may make an exception to this rule for a borrower in default on his/her mortgage at the time of the short sale if the
• default was due to circumstances beyond the borrower’s control, such as death of primary wage earner or long-term uninsured illness, and
• a review of the credit report indicates satisfactory credit prior to the circumstances beyond the borrower’s control that caused the default.
4155.1 4.C.2.l Short Sales

The guidelines (not rules) address defaults and current at the time of the short sale. They don't actually address mere delinquency. However, the "experts" have taken default to mean delinquency.

On top of that, the exception states clearly: default was due to circumstances beyond the borrower’s control, SUCH AS death of primary wage earner or long-term uninsured illness

Such as, generally, means an example, and not exclusivity. However, from the posts I read below, that's exactly the way it's being interpreted.

I understand lenders/underwriters/mortgage professionals being wary of people that have gone through foreclosures, but they're being ridiculous and interpreting "guidelines" like they went to law school.

Good luck with your hunt for a loan. There has to be someone out there that can see that a Guideline is a Guideline, and additional circumstances may be used to determine loan eligibility.
1 vote Thank Flag Link Mon Aug 6, 2012
Yes! We can do it.

We have a program that allows a borrower to buy again just One Day after Foreclosure or Short Sale.

It is a "Portfolio Loan" and underwritten in house. The rates are much better than "Hard Money" which up until recently was the only option.

Let me know if you are still looking.

Thanks
1 vote Thank Flag Link Thu Sep 19, 2013
Anyone Looking for An urgent Loan should contact Rev. Allen Walter a Genuine Loan Shark on His Email ID supremacyloancompany@gmail.com
Flag Tue Feb 24, 2015
I would like to refinance my primary home which has a 4.5 adjustable mortgage due to reset in 2018 and a $200,000 line of credit at 2.47. I would like a 5 year adjustable if I could find one. I short sold two rental properties in 2013 . Otherwise my credit is good and no other problems I can see. However, everybody says 2 years are required from the short sale. My home is valued by Zillow at $760,00 or so..
Flag Sat May 17, 2014
Are you still offering this mortgage? We have great rations. Very little revolving debt but had a Short Sale 4/2013. We are planning to wait the full 24 months before we buy again.
Flag Wed Feb 19, 2014
AZ, CA, CO, DC, FL, HI, IL, MD, MT, NV, NJ, NY, NC, OR, SC, VA, and WA
Flag Thu Feb 6, 2014
Sorry.. not in TX yet.
Flag Thu Feb 6, 2014
Im also looking for a home loan just months after a short sale, Can you help
Flag Wed Dec 18, 2013
Sjamison,

Did you have any lates as part of the short sale? If you didn't, you are eligible for an FHA loan immediately. Most people do have lates though, so let's assume you did, and that is the challenge. USDA does not require a wait time after a short sale. However the issue you will run into is investor overlays. Overlays are guidelines or requirements that lenders or investors put on top of the defined program requirements. Most investors have overlays unfortunately. Most of them will require 3 or 4 years post short sale. However, chase rural housing does not have overlays, so if you can find a lender who sells loans to chase rural you could be in business as long as you meet all the defined USDA requirements and have property and income that is USDA eligible. One lender I know that sells to chase rural is first capital mortgage group in Pittsburgh. Call them at (412) 942-1020 and ask for Jason livengood at ext 28. You wont run into overlays with those guys. Tell him I sent you.
1 vote Thank Flag Link Sat Sep 8, 2012
Just a note. I wrote to USDA to be specific and their guidelines are identical to FHA regarding short sales including not being late at the time of the sale. 36 months from time of sale. Sadly many have misread the guides.
Flag Tue May 14, 2013
I had some clients with the best credit and cash on hand you could imagine. I successfully short sale'd their home (way underwater) and then they tried to buy as quickly as possible. No matter how many lenders they talked to, it was impossible. The two year minimum I told them about was impossible for them to overcome. So, I'd talk to a lender right away after the 2 year mark is over, even now they could give you good suggestions on how to improve your credit. (However, there is one lender who answered this question that thinks he can do it in one year - that'd be the first time I'd heard of that.)
1 vote Thank Flag Link Wed May 16, 2012
Hi Stephen, We have a portfolio program that allows borrowers to buy again one day after Short-Sale or Foreclosure. It's a minimum 20% down and 660 mid FICO, otherwise it's pretty straight forward. Let me know would like more info.
Flag Mon Dec 2, 2013
It sound like you are doing everything right. The fact that you have scores up into the mid-600s now is great considering what you’ve been through. I’ve read through the comments below, and I thought I’d chime-in and give you the basic guidelines so you have some point of reference. Just so you know however, guidelines have a nasty habit of changing, so saying you can do something in 6 months may not be the case if the rules change before that time. In any case, here are the rules as of now:

VA – as little as 2 years after a foreclosure, short-sale, or chapter 7 bankruptcy you could potentially be approved. This is obviously your best bet.
FHA – you’ll need 2 years after a chapter 7 bankruptcy, but 3 years from a short-sale or foreclosure. There is an exception if you were required to move to a completely different market, and you didn’t miss any payments for the last 12 months - and were up-to-date at the time you completed the short-sale, you could buy immediately after the short-sale. (Sorry, but your situation won’t be an exception – even if you have it in writing that BofA told you to miss payment to start the process.)
Fannie-Mae – it will take 7 years from a foreclosure (they don’t like these,) but as little as two years from a short sale. The trick is you will need to put 20% down to buy again after only two years. You need 10% down after 4 years, and in order to do maximum financing, a full 7 years needs to have elapsed. If you had a chapter 7 bankruptcy you need to wait 4 years.
USDA – it’s basically 3 years from a foreclosure, a short sale, or a chapter 7 bankruptcy is required.

So it sounds like you will be good to go on a VA in a little under a year. Best of luck to you, and keep up the good work. Feel free to go to my profile page and call or e-mail me directly if you have any other questions.
Web Reference: http://www.SacRELender.com
1 vote Thank Flag Link Mon May 14, 2012
do you have options for nc?
0 votes Thank Flag Link Mon Feb 16, 2015
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0 votes Thank Flag Link Sun Oct 26, 2014
You can definitely buy a home after a short sale, 2 years is the earliest going conventional. 3 years going FHA but if there were certain circumstances, you can buy sooner.
If you did a short sale and didnt have any lates prior, then you dont have any wait time, you are ready to buy asap.


Riccardo Wardlow
NMLS 219402
Cross Country Mortgage
630-670-8266
Specializing in Illinois and California
RATED A+ WITH THE BBB

*We do Conventional loans down to a 620 score
*We do FHA loans down to a 580 score
*We do USDA loans down to a 620 score (no money down)
*We do $100 down payment FHA program
*Unlimited Loan To Value refinances on Fannie/Freddie refinances (only on loans originated before May 31st 2009
*We do VA loans down to a 600 score
*We give free counseling on what needs to be done to improve your credit score.
*We do 203k loans down to a 640 score
*We do reverse mortgages
*We do JUMBO loans to 12 million
0 votes Thank Flag Link Thu Oct 23, 2014
We were current at the time of the short sale and had to move from California to Houston Texas for new job. Our credit scores were in the 800's. Any options in Houston for a home loan?
Flag Tue Jan 6, 2015
Yes there is a new program for FHA by HUD for people in your shoes you just need 12 months from the date of the Bankruptcy, short sale or foreclosure.

The U.S. Department of Housing and Urban Development (HUD) recently announced the “Back to Work – Extenuating Circumstances program, aimed to help people who have lost their home through foreclosure, short sale or bankruptcy. HUD has reduced the previously required minimum of 36 months to 12 months before they may be able to finance another home, given that they meet HUD’s minimum eligibility requirements.
0 votes Thank Flag Link Sat Oct 18, 2014
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0 votes Thank Flag Link Sat Jul 26, 2014
Quote: "final year student of Medicine and Surgery Concordia University" yet writes like someone who didn't even finish high school.
Yeah, ok, sure.
Flag Mon Nov 17, 2014
Hmmm...a medical student with the time to post on a real estate website to promote a loan service? Something doesn't add up here!
Flag Sat Jul 26, 2014
Wao , i never knew it was true until i got my loans also , each time i read several testimonies of people about this loan company online i keep feeling it was a set up or probably they were all faking it but not knowing that it was absolutely 100% real . i am also also happy and thankful that i am also a witness to it and now i am among all those testifying about this loan company online. Queeneth Stark Loan Council is the best !! I have had 100 % attention to everyone of my questions and they were handled immediately and above all also ,i just got my loan of $ 10,000.00 via my bank account here in Netherlands. I would recommend this service to everyone! here is the details that i used in contacting them : mrsstarkloans@aol.com

Mrs Zoe Amber.
Netherlands.
0 votes Thank Flag Link Sat Jul 26, 2014
You don't have to wait.....

We have a portfolio "2nd Chance" loan (NOT FHA back to work) that allows you to buy again just one day after Short-Sale or Foreclosure. You can only have one on your credit and you will need a 20% down-payment and 660 mid FICO score.

This loan is available in - AZ, CA, CO, DC, FL, HI, IL, MD, MT, NV, NJ, NY, NC, OR, SC, VA, and WA . Loan amounts up to $4 million +
0 votes Thank Flag Link Thu May 22, 2014
what happens if you have a credit score of 661, but not the 10% down-payment?
Flag Tue Nov 11, 2014
Try Calvet. My buyer just bought a house one year after his foreclosure and he used CalVet. The terms are very similar to VA. I was very impressed with how good CalVet did.

They look at each situation on a case by case basis. I think your credit score is already high enough to qualify. I have included her contact info below.

Shelley Griffin, Associate Property Agent

CalVet Home Loans
Loan Processing Unit
1227 O Street #222
Sacramento, CA 95814

Phone: (916) 503-8352
Fax: (916) 653-9641
Shelley.Griffin@calvet.ca.gov

It is difficult to get through by phone but very easy to communicate to her by email. Once again, I was very impressed with he awesome job that Shelley did. It was the first time that I had ever had her as a lender on one of my transactions and I highly recommend her!

Feel free to call me if you have any questions...
0 votes Thank Flag Link Wed Apr 16, 2014
CalVet now has a new and improved website where you can apply online at https://www.calvet.ca.gov/calvet-programs/home-loans
The correct phone number is 916 503 8359
Flag Fri May 2, 2014
Don't let a foreclosure stop you from buying another home. Visit Comstock if you have a buyer in need.
0 votes Thank Flag Link Sat Apr 5, 2014
The best first step to homeownership is to talk with a lender who specializes in home lending. You will need to choose a lender at some point so its the best place to start the home buying process. This simple step will allow you to know exactly where you stand now and what you need to do in order to secure a home loan again. Call/email me if you'd like a professional referral to a couple sincere lenders in the Sacramento area. Wishing you the best of luck JM! Hyatt Simons, REALTOR | HyattSimons.com | 916-508-1891 | calBRE# 10889685 | Coldwell Banker
0 votes Thank Flag Link Sun Feb 2, 2014
CalVet might be an option. I have a client buying a home right now 16 months after a foreclosure with an approval from CalVet. They seem to work with the veterans on a case by case basis.
0 votes Thank Flag Link Sun Dec 1, 2013
Borrowers who lost their homes due to foreclosure no longer have to wait 3 years to apply for a new loan. Visit http://www.whywaitbuytoday.com and see if you qualify today.




-----
CFS Mortgage
http://www.whywaitbuytoday.com
0 votes Thank Flag Link Sun Dec 1, 2013
So many answers... Only way to know for sure is to visit with a reputable mortgage lender to see what purchase programs you qualify for - Good luck!
0 votes Thank Flag Link Wed Nov 20, 2013
Yes you can receive a loan 1 day after a short sale. We work closely with a major lender who will give homeowners who will lend so you can buy a new home. You can purchase in the same neighborhood and keep your kids in the same school district. If you owe more than your home is worth and thinking of selling give us a call. We can discuss selling your home and buying a day after you sell.
0 votes Thank Flag Link Tue Nov 19, 2013
We had chp 7 bankrupcy discharger in aug of 2009. We chose to keep house and did not know home was never reaffirmed until may of this year when we put the house for sale and started looking around for new lender to prequalify us for new loan. We also started loan modification with BOA over a year ago, they lost our paperwor we had to resend same stuff 3-4 times and in june i find out our name is showing up default in caivrs. I paid whatever needed to have that removed and thry said best thing to do is cancel modification so they can apply payments to my loan from partial account. It has been nightmare with them the worst bank anyone can work with!!! Now no one will approve us for new loan because we had lates and because the way they applied payments after loand mod cancelation. Is there a lender that will approve with lates jn past 12 months??? Or do we have to wait 12 more konths. Please help!!
0 votes Thank Flag Link Thu Sep 12, 2013
Hello,

I have a great portfolio program designed specifically for folks who have had a foreclosure, short sale or deed in lieu. NO SEASONING IS INVOLVED. 660 credit score 20% down up to $1MM in California. I don't know of any other bank that has this product.

Our bank also has all of the traditional products as well. Feel free to give me a call if you want to talk. My number is listed in my profile along with my website and recommendation.

Paul Watkins
Web Reference: http://pwatkins.mhmb.com/
0 votes Thank Flag Link Wed Sep 4, 2013
VA rules for short sale is 24 months from the date of the transfer to the new owners.
Late payments are not a problem.
I just closed a VA today where they had 2 short sales 26 months ago.
I can help you!
0 votes Thank Flag Link Mon Aug 26, 2013
FHA did come out with a new policy this week (mortgagee letter 2013- 26) that will allow you to get a new loan 12 months after a short sale provided you meet a number of conditions. Your short sale had to be caused by a loss of income (at least 20% a month) that lasted for at least six months. Also, following the short sale, you need to show that you have recovered economically (income back to normal) and you have to show pretty much a perfect credit record, all payments made on time, for the past 12 months. And you also need to attend a housing counseling session (of at least 1 hour in length).

However, even though FHA has made these rule changes, many lenders will choose to NOT follow them (and are not required to do so). So in talking to different lenders, be sure to find out if they are accepting the new FHA loan guidelines.
0 votes Thank Flag Link Thu Aug 22, 2013
I think I just read this week some new changes to the policy and that, if you can prove you've had more than a 20% reduction in your income which caused the short sale, and that you've been current in all of your payments within the last 12 months, that you can get a new mortgage in 12 months.

I saw it once, and thought it was a marketing promotion, But then I saw it again two other times. I've asked my lender what he knows about this....so check again. There might be something that changed just recently. I'm checking this out. I don't know if it's fact or fiction but it sounds promising.
0 votes Thank Flag Link Thu Aug 22, 2013
Be careful here. Nobody can help you here or even suggest how you can get financial help. Any answer of a loan lender to your question, you MUST ignore, because they are SCAMS…real SCAMS…i was a victim of which i was ripped thousands of dollars…well thank God for a Christian sister who referred me to a loan organization formed by some Christian Women. it is called Christian women Trust-funds Cooperative Organization.(C.W.T.C.O). They made my life a valuable one and gave it a meaning. When the sister gave me their contact, I contacted them. Then I requested for a loan with all the necessary evidence to prove that I actually needed a loan, they approved a loan of $30,000.00 USD and in 48 hours after meeting up to their necessary requirements, my loan was deposited in my bank account without collateral. Though i was very nervous with the loan organization at first due to my previous bad experiences, especially when the issue of me settling the transfer charges came up, I hold on to my faith due to the fact that my relative referred me, got it cleared,and as God should have it, little did I know that my financial shortcomings has come to a final HALT. If not for that quick referral from a christian sister to that genuine source ,I would have regretted my total life,because at that point in time i just divorced the father of my son, and my son (Kennett) was faced with a life and death situation. I was faced with his hospital bills and i was also faced with foreclosure at my apartment. Details of this GOD-SENT organization won’t be disclose for now for fear of impersonation ( because it has been discovered that some persons are not really in need of financial help, but they just want to collect money from this genuine christian loan organization). And it is because of this reason they don,t give out loan anyhow. You must be able to convince them very well, and provide good proofs to show that you really need a loan before they can approve it for you. Their charge is very affordable and reliable compare to many out there,their interest rates is just 2%,little documentation,and little credit check. As i have earlier said, for security reasons i can only provide their email address. Embrace this new initiative.Feel free to contact them via Email(christianwomen.trustfunds@gmail.com)as their loan officer/rep. will attend to you and you will be free from scams and financial burdens. Sincerely, Christine Coleman.
0 votes Thank Flag Link Thu Aug 22, 2013
Just updating a prior post for those who need the information, here is a link to a document that has the timelines for Bankruptcy, foreclosure, and short sale for all types of loans.

Foreclosure,BK, Short Sale Seasoning.pdf (file://GREGHERMAN-PC/Users/Greg%20Herman/SkyDrive/Documents/Flyers/Foreclosure,BK,%20Short%20Sale%20Seasoning.pdf)

Greg Herman
951-265-1607
Straight answers, no games, no guessing.
0 votes Thank Flag Link Sat Aug 10, 2013
To be approved for the new VA home loan, the borrower would have to maintain good credit after the short sale, and the date of the short sale must be documented on a credit report or other paperwork.

In cases where the lender approves of the new loan, the VA loan applicant who has good credit, has waited two years since the official date of the short sale, and provides the required supporting evidence could be approved for a new VA home loan.

It's important to point out that not all lenders permit these types of transactions, and some require the borrower to wait longer than the VA two year minimum. But lenders who do agree can help a qualified borrower ready to become a homeowner again--even after a short sale.

http://www.loancityhomeloans.com
0 votes Thank Flag Link Sat Aug 10, 2013
There is a site that will help you determine if you can qualify for a refinance after short sale, foreclosure, or filing bankruptcy. Check out http://www.whywaitbuytoday.com
0 votes Thank Flag Link Sat Aug 10, 2013
I had a buyer that wanted to buy a home in Arizona, but he had a Chapter 7 bankruptcy 7 months ago. I introduced a loan program at http://www.cfsflex.com, they allow a mortgage after a foreclosure, short sale, or bankruptcy. There is only a six month waiting period. This is perfect for individuals looking to become homeowners again.
0 votes Thank Flag Link Sat Jul 20, 2013
After very little research needed, this hard money lender keeps posing as a buyer/seller and posting about cfs flex. They have been reported.
Flag Sat Aug 10, 2013
Since this post has come up again I figured I may as well add that you should be eligible now even with the missed payments for financing. Feel free to contact me for more info.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Fri Jul 19, 2013
Fi you haven't figured it out yet,call me. I can help you get qualified for a mortgage in California either VA or RD. Marty Hankins 801-360-6331 ENG Lending Utah
marty@englending.com
0 votes Thank Flag Link Fri Jul 19, 2013
A few other people here have mentioned CFS Mortgage. I am currently working with them, and let me tell you, they have THE BEST customer service I have ever experienced with a mortgage broker. Not only have they helped me buy after a short sale, they made it almost painless. I am not using their flex program but opted instead to do the 20% down, 30-year fixed route. I highly recommend them, ask for Chriss, he's the best.
0 votes Thank Flag Link Tue May 21, 2013
I had a short sale last year and my Realtor recommend http://www.cfs-mortgage.com/flex for a home loan. I a very happy to be able to purchase again.
0 votes Thank Flag Link Mon May 6, 2013
OK wow I don't know why that posted so many times, I'm not trying to spam.
Flag Tue May 21, 2013
I am currently using CFS Mortgage after a short sale (not using their flex program, just getting a regular loan) and they are FANTASTIC. Ask for Chriss, he is wonderful.
Flag Tue May 21, 2013
I am currently using CFS Mortgage after a short sale (not using their flex program, just getting a regular loan) and they are FANTASTIC. Ask for Chriss, he is wonderful.
Flag Tue May 21, 2013
I am currently using CFS Mortgage after a short sale (not using their flex program, just getting a regular loan) and they are FANTASTIC. Ask for Chriss, he is wonderful.
Flag Tue May 21, 2013
I am currently using CFS Mortgage after a short sale (not using their flex program, just getting a regular loan) and they are FANTASTIC. Ask for Chriss, he is wonderful.
Flag Tue May 21, 2013
I am currently using CFS Mortgage after a short sale (not using their flex program, just getting a regular loan) and they are FANTASTIC. Ask for Chriss, he is wonderful.
Flag Tue May 21, 2013
I am currently using CFS Mortgage after a short sale (not using their flex program, just getting a regular loan) and they are FANTASTIC. Ask for Chriss, he is wonderful.
Flag Tue May 21, 2013
I am currently using CFS Mortgage after a short sale (not using their flex program, just getting a regular loan) and they are FANTASTIC. Ask for Chriss, he is wonderful.
Flag Tue May 21, 2013
Your question was originated in 2012, so at this time, you are well past the two year mark. Any chance you can share your experience?

As I read some of the responses here, I suspect there's some who do not understand what the HUD guidelines are, and why they are in place. A lender, when he originates a loan, most often SELLS that loan to an investor, (whether or not the SERVICER - who you pay each month- remains the same). Most often (almost always) in this economy the investor who owns your loan is a government entity. Therefore, when a lender originates the loan, they want it to comply with what their investor requires. There is no judgement, but sound economic principles applied to help avoid the issues we had in the past.

Many of my clients who have had to wait the 2-3 years came back in the market with a mortgage rate much improved than when they left the market. So while they didn't like to wait, it actually worked in their favor. I hope you were able to move forward now. And again, we'd appreciate hearing of your success in re-entering the market after a short sale.
0 votes Thank Flag Link Wed Apr 24, 2013
I had a client who wanted to buy a home in Arizona, but he had a foreclosure. After researching the web I found a loan program at http://www.cfsflex.com, they allow a mortgage after a foreclosure. There is no waiting period. Good to see lending options coming back.

Visit http://www.cfsflex.com for more details.
0 votes Thank Flag Link Tue Apr 23, 2013
I am currently using CFS Mortgage after a short sale (not using their flex program, just getting a regular loan) and they are FANTASTIC. Ask for Chriss, he is wonderful.
Flag Tue May 21, 2013
I am currently using CFS Mortgage after a short sale (not using their flex program, just getting a regular loan) and they are FANTASTIC. Ask for Chriss, he is wonderful.
Flag Tue May 21, 2013
I am currently using CFS Mortgage after a short sale (not using their flex program, just getting a regular loan) and they are FANTASTIC. Ask for Chriss, he is wonderful.
Flag Tue May 21, 2013
I am currently using CFS Mortgage after a short sale (not using their flex program, just getting a regular loan) and they are FANTASTIC. Ask for Chriss, he is wonderful.
Flag Tue May 21, 2013
I am currently using CFS Mortgage after a short sale (not using their flex program, just getting a regular loan) and they are FANTASTIC. Ask for Chriss, he is wonderful.
Flag Tue May 21, 2013
I am currently using CFS Mortgage after a short sale (not using their flex program, just getting a regular loan) and they are FANTASTIC. Ask for Chriss, he is wonderful.
Flag Tue May 21, 2013
Charlie if you reread my post you will find the only loan available one day after a short sale is FHA. There are restrictions that comes with this but the interest rate is no different.
0 votes Thank Flag Link Wed Apr 17, 2013
That's only if you have no lates prior to short sale. We all know how extremely difficult it is to secure a short sale without ever being late.

However, technically a USDA guaranteed loan could be available 1 day after short sale. There is no documented required waiting period after a short sale even with lates on your credit report. Finding an investor that will go along with this is however another story. The only one I know of is Chase Rural.
Flag Wed Apr 17, 2013
I'd love to hear the interest rate on that doozy of a program. Yikes.
0 votes Thank Flag Link Wed Apr 17, 2013
I have short sale financing for 1 day after a short sale or foreclosure.

http://www.homeloansbybrown.com/short-sale-financing
0 votes Thank Flag Link Tue Apr 16, 2013
Here is an update to this answer. With VA, regardless of lates prior to the shortsale, you are able to purchase. On conventional, you can purchase after 2 years even if the credit bureaus mistakenly show you with a foreclosure. Many lenders can't work with this however I am able to do this type of loan.

The only time you can repurchase 1 day after is if you do not have any mortgage lates leading up to your shortsale and you were not in default. There also are repurchase restrictions per HUD regarding this as well.

Many lenders have guideline overlays that restrict what they are able to do. These are mostly banks and credit unions however smaller mortgage bankers also have additional restrictions as well. Being direct has it's advantages. I hope this helps.
0 votes Thank Flag Link Sat Mar 30, 2013
Jim, unfortunately since you missed payments you're looking at a 3 year wait most likely. Unless you qualify for a USDA guaranteed loan (income and property has to qualify) and find a mortgage company (chase rural) that doesn't have overlay, you're going to be waiting 3 years. Find a rental and just wait it out.
0 votes Thank Flag Link Sat Mar 30, 2013
Owners who have had a foreclosure 2 years ago just got approved to buy a new home. According to their site http://www.cfsflex.com you can qualify one day after a foreclosure.

They have a program called Flexible Credit Loan which seemed too good to be true, but I have heard that many got approved and now have a pending offer, even after the short sale less than two years ago. Big banks said it could not be done.

Obviously it can.
0 votes Thank Flag Link Fri Mar 29, 2013
Hi!
What kind of loan did you do a short sale on? Conventional? FHA? VA? This does have some bearance on going forward as government loans may have different dates and clearances.

Also what I am finding is those borrowers who went through s short sale and had a first and a second are running into issues due to the credit reporting of the short sale. After numerous hours of research I've been able to cure this where other lenders are not able to do so. The credit report triggers the DU underwriting to show your credit as a foreclosure rather than a settled account or short sale.

Generally 2 years on VA, 3 on FHA for a short sale. I work for a mortgage banker and am able to handle all of the California area. With 27 yrs of experience in lending, I'm sure I've got the answers to help you move forward.

Greg Herman
South Pacific Financial Corp
951-265-1607
0 votes Thank Flag Link Thu Jan 17, 2013
VA loans are awesome and work on a case by case basis..
Basically though u need to remove those lates...there are companies that can do this.
As long as you DID NOT miss 4 payments that would be harder, because once you are 120 days late..the bank files an NOD notice of default..this starts the foreclosure process and shows on MERS that basically you foreclosed even if you didn't....
so fix those lates , get them removed....THEN approach VA....
as long as your credit is in the high 6's or 7's and you are working...and current on bills now..
and have income coming in and some reserves...it is on a case by case basis and they are very
aggressive in approving new loans... hope this helps...
Sheyenne Schultz 310-429-4170 shy@shysells.com
0 votes Thank Flag Link Fri Oct 19, 2012
We completed a HUD short sale in November 2009. We went to buy a house last month and 2 days prior to closing were denied the VA mortgage because we still had a CAIVRS number attached to our short sale. We thought you had to wait 3 years after a HUD short sale. Well, apparently it is 3 years AFTER THE DATE THAT THE INSURANCE CLAIM WAS PAID. We were devastated. The insurance claim was not paid until a YEAR after the short sale completed. So really we are having to wait 4 years to get a mortgage, not 3. I am so angry. We have great debt to income ratio, great jobs, good credit - shouldn't have been a problem until CAIVRS showed up at the last minute. Please, if anyone knows a way around this, get in touch with me. We do not want to wait another year or more to purchase another home. Shouldn't there be a deadline for insurance claims to have to be paid. A whole year? Really? My email is kstier71@gmail.com. Any advice would be helpful - Karen
0 votes Thank Flag Link Fri Oct 19, 2012
If the house is in a USDA eligible area you could go that route since there is no defined wait period. You could also check with conventional lenders about how they define their wait period. 3 years out from short sale I believe you can get a conventional loan with only 10% down. Also check how FHA defines their 3 years wait as well. Maybe that could be an option.
Flag Fri Oct 19, 2012
You could also try some hard money loans, or portfolio lenders (meaning they hold the loan inhouse) to see if you could find one that would lend you money. In those cases you need to bring in more downpayment and the rates may be a little higher but would something like 5% be unreasonable. A year or so ago we would have LOVED that rate.
0 votes Thank Flag Link Sat Oct 13, 2012
U can buy now! Email me at shy@shysells.com and give me your phone to contact u or call me directly at 310-429-4170 Sheyenne Schultz.
Web Reference: http://Www.shysells.com
0 votes Thank Flag Link Sat Oct 13, 2012
Yes we are 24 months late and read somewhere that extenuating circumstances like a disability would shorten or eliminate waiting period. I assume that is not correct.
0 votes Thank Flag Link Sat Oct 13, 2012
Charlie,

Im from Coatesville and completed a short sale on my town home 18 months ago. There is so much back and forth when it comes to this answer. I have been told by numerous brokers that I must wait the 3 years no matter what. Then I was told USDA could be the answer. Then I see online that there may be other options for us. What is the answer? Do you know of anyone in our area that can help?
0 votes Thank Flag Link Sat Sep 8, 2012
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Flag Thu Mar 20, 2014
I hate to see disinformation posted, especially from people who work with mortgages every day.

For USDA Guaranteed loans, there is ABSOLUTELY NO DOCUMENTED 3 year waiting period after short sale. It simply doesn't exist. I have read every official USDA guaranteed loan document, and it doesn't exist. I've talked to USDA representatives who walked down the hallway and asked USDA underwriters, and they said no 3 year waiting period exists. They take it on a case by case basis.

If you are going to act like an authority, please get your facts straight so people can get GOOD information from this site.
0 votes Thank Flag Link Sun Sep 2, 2012
Rubia78, Could you let me know who you contacted for your loan?
Flag Sat Oct 26, 2013
This is very accurate information. We short sold our house in June of 2011 ( we did not have any lates though) but we found an awesome USDA approved loan officer, who told us we could buy again w/ a USDA loan. There is no documented information saying you must wait. Guess what? After finding another short sale house, we closed on it 9 months after we shorted our house. So this is the way to go if you want to buy after a short sale
Flag Tue Sep 4, 2012
VA loans are the best after short sale or foreclosure, you only need to wait 2 years and VA is zero down. Conventional loans you need to wait 2 years + 20% down, so big difference. FHA is a 3 year wait after a short sale with lates leading up to it.
Web Reference: http://www.socalvaloans.com
0 votes Thank Flag Link Fri Aug 31, 2012
I've gone through 3 lenders after our short sale 2.5 years ago and can't get an approval , they both claim minimum 3 years.
Flag Wed Oct 10, 2012
Actually, conventional loan is 4 years after short sale.
Flag Mon Sep 10, 2012
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