Financing in 30296>Question Details

Faith3, Both Buyer and Seller in 30349

how long do you have to wait if you have a short sale on a property, or do a deed in lieu before you can apply for another mortgage loan? Thank you.

Asked by Faith3, 30349 Thu Mar 17, 2011

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Solomon Greene’s answer
Hi Faith,

A few lenders were asked this question a couple of years ago and their answers at that time may be found below. As I'm sure you know, this industry has changed drastically over the last few years so I recommend more due diligence before taking any action. Call the National Foundation for Credit Counseling (NFCC.org), Credability (credability.com) or even a couple of lenders for more information.

Short Sale

At least three years must have elapsed since the sale of a property involving an FHA mortgage or two years with extenuating circumstances if the borrower was in default at time of sale. At least four years must have elapsed since the sale of a property involving an FHA mortgage or two years with extenuating circumstances.

Deed-in-lieu of Foreclosure

At least three years must have elapsed since the completion of this action or less than three for owner-occupants with extenuating circumstances before the borrower may be approved for an FHA mortgage. At least four years must have elapsed since the completion of this action or two years with extenuating circumstances before the borrower may be approved for a conventional mortgage. At least two years must have elapsed since the completion of this action or less than two for those with extenuating circumstances before the borrower may be approved for a VA mortgage.

Hope that helps.

Solomon Greene
REALTOR® / HUD-certified Affordable Housing Counselor - Keller Williams Realty Atlanta Partners
(678) 775-2677
0 votes Thank Flag Link Fri Mar 18, 2011
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