Financing in 90505>Question Details

Kennedy O'Re…, Real Estate Pro in Torrance, CA

are there any lenders who will make a loan to someone buying a home in California that had a foreclosure or short sale in the last year or so?

Asked by Kennedy O'Regan, Torrance, CA Wed Jul 10, 2013

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Hello Kennedy,

We have a bank backed program with reasonable rates that will allow for a short-sale, foreclosure or deed in lieu with no seasoning involved. This is not the FHA "Back to Work" program.

We call it our 2nd Chance / Expanded Criteria loan. It requires 20% down for loan amounts up to $1MM and a 660 credit score.

If you are interested in learning a little more feel free to reach out to me.
0 votes Thank Flag Link Tue Oct 1, 2013
it is possible if the foreclosure or short sale was "strategic"......due to the economics of the situation. Having a 30% or more down-payment and good credit history (outside of short sale/foreclosure account) is key.

If you need help, feel free to call or email me with the particulars.

Kennedy O'Regan
0 votes Thank Flag Link Mon Sep 30, 2013
For all details, please review the complete 15 page mortgagee letter 13-26 that I was referring to in my previous comment

(click on mortgagee letter 13-26 on the HUD Website;…

Or feel free to email me for a Summary as this program is not for everyone

0 votes Thank Flag Link Mon Sep 9, 2013
I find it very odd and equally disturbing that many post about the FHA "Back to Work" program, but don't mention the most important part of qualification for this program. I see a trend with lenders stating they can do 1 year out of foreclosure now with the new FHA initiative but failing to detail the true qualifications.

If you say this:
"To qualify for purposes of establishing Satisfactory Credit following an Economic Event, participants in this FHA initiative must: "

Without defining what an "economic event" is per guideline, it may be misleading in my opinion/

Here's what an "economic event is" per guideline: It is ONLY this and nothing else that will qualify you for this financing.

An Economic Event is any occurrence beyond the borrower’s control that results in Loss of Employment, Loss of Income, or a combination of both, which causes a reduction in the borrower’s Household Income of twenty (20) percent or more for a period of at least six (6) months.

The Onset of an Economic Event is the month of Loss of Employment/Income.
Recovery from an Economic Event is the re-establishment of Satisfactory Credit (as defined on page 5 of this ML) for a minimum of twelve (12) months. "

Please note that to be eligible for the 1 year post foreclosure financing with FHA you MUST be able to document a loss of income that was beyond your control of at least 20% that lasted for 6 months. FHA isn't just handing out candy to everyone, there are actual rules that no one seems to want to mention while they are pitching the product.

Make sure you know the facts, read the mortgagee letter yourself and be informed:
0 votes Thank Flag Link Fri Sep 6, 2013

We have launched a new FHA product that will follow Mortgagee letter 13-26 allowing new purchase loan for borrower with 1 YEAR OUT OF FORECLOSURE, SHORT SALE AND BANKRUPTCY

As a result of the recent recession many borrowers who experienced unemployment or other severe reductions in income because of this “Economic Event”, were unable to make their monthly mortgage payments, and ultimately lost their homes to a pre- foreclosure sale, deed-in-lieu, or foreclosure. Some borrowers were forced to file for bankruptcy to discharge or restructure their debts. Because of these recent recession- related periods of financial difficulty, borrowers’ credit has been negatively affected. FHA has finally recognized the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.

To qualify for purposes of establishing Satisfactory Credit following an Economic Event, participants in this FHA initiative must:

o Receive homeownership counseling or a combination of homeownership education and counseling provided that each participant receives, at a minimum, one hour of one-on-one counseling from HUD-approved housing counseling agencies. The counseling must address the cause of the economic event and the actions taken to overcome the economic event and reduce the likelihood of reoccurrence. The housing education may be provided by HUD- approved housing counseling agencies, state housing finance agencies, approved intermediaries or their sub-grantees, or through an on-line course, and

o Be completed a minimum of thirty (30) days but no more than six (6) months prior to submitting a loan application to a lender.

Housing counseling may be conducted in person, via telephone, via internet, or other methods approved by HUD, and mutually agreed upon by the borrower and housing. is the link to the HUD approved Counseling Agencies’ site. However, many of those on this list either do not offer the One on One counseling that is required or they are not yet prepared and trained for this very specific counseling. HUD is aware of this issue and has reached out to the Counseling Agencies’ to give them training and guidance. If you are having a hard time finding a counseling company, please email me at and I will attempt to help you, and if you have found a company in your area, please share that info with us as well. Once HUD comes up with a reliable list, HUD would prefer borrowers go straight to the HUD link and not be steered by other parties to the transaction.



Thierry Abel
Senior Loan Consultant
By Referral Only
All California Mortgage
A Division of APMC
P: (415) 464-8261
C: (415) 378-7508
F: (415) 464-2367
NMLS 304353 - BRE 01380701
0 votes Thank Flag Link Fri Sep 6, 2013
Yes, and you call them mom and dad.
0 votes Thank Flag Link Fri Sep 6, 2013
There are lenders right now that will loan 1 day after a short sale. These are usually FHA loans with certain layers or guidelines set forth by that lender. You can also do VA loans after a short sale with no waiting periods, but mostly if u were current during your short sale... With the VA ...each loan is on a case by case basis. There are also lenders now that are NOT backed by Fannie or Freddie rules or guidelines....they are private investors that "WRITE" their own rules...and therefore can determine "who" and "what" their guidelines are on lending after a short sale. I know , because I have many clients who've obtained these loans in the past 2 years and who are obtaining them now...especially since these lending institutions see this niche being a huge market.
0 votes Thank Flag Link Fri Aug 16, 2013
It's probably better they write their own rules rather than barney frank.
Flag Fri Sep 6, 2013
Lending institutions are at the mercy of the bubble blower. Their niche is knowing they will get bailed out.
Flag Fri Sep 6, 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, 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 Aug 3, 2013
0 votes Thank Flag Link Fri Aug 2, 2013
Hi Kennedy,

YES, there is a Lender who will finance a new Primary Residence purchase the day after a foreclosure or short sale which is a Single Family Residence, as long as you have 25% down & at least a 600 credit score.

We will also finance individuals who had a Bankruptcy after 6 months.

Please feel free to contact me directly if you have any further questions, I'd be glad to help.

All the best,

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct
NMLS ID 263779

Sun West Mortgage USA, Inc. (FN) is a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline refinance loans (NO minimum credit score, NO appraisal required), HARP 2.0 - No Appraisal Required to Refinance Underwater Homes, HomePath, Investor Friendly (10 financed properties), VA, VA Refinance loans (NO appraisal required on IRRRL loans), USDA loans, Jumbo loans, Conventional loans, plus, we allow Escrow Hold-Backs! NMLS ID 263779; NMLS Company ID: 3277 / Branch ID: 359295
Web Reference:
0 votes Thank Flag Link Fri Jul 12, 2013

Who is that lender?

Flag Sat Aug 17, 2013
We will do it when short-sale with extenuated circumstances and good credit for up to 50 - 60% loan to value


Thierry Abel
Senior Loan Consultant
All California Mortgage
A Division of APMC
P: (415) 464-8261
C: (415) 378-7508
F: (415) 464-2367
NMLS 304353 - DRE 01380701
0 votes Thank Flag Link Wed Jul 10, 2013
With FHA you can buy again in 3yrs, you may be able to buy sooner with Conventional with a min. 20% down.

Please speak with my trusted lender, Ryan Gale at JMJ Financial for more details & all the rules at 714-401-7282 or email him at, he can also help you to boost up your FICO scores quicker.

Emily S. Knell
562-430-3053 c
Realtor Since 1996
Realty ONE Group
0 votes Thank Flag Link Wed Jul 10, 2013
Hello, lenders will require a 7 year waiting period after a foreclosure or two years after a short sale. Feel free to call me with any additional questions at (925) 872-0695
0 votes Thank Flag Link Wed Jul 10, 2013
There is a difference between a foreclosure and a short sale. And it may make a difference if there are extenuated circumstances.
Contact me if you want a local referral.
0 votes Thank Flag Link Wed Jul 10, 2013
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