Hi Alma, the lending industry is ever -changing and no one can really say what the rules and regulations will be in 2 years from now or 3 years from now. Just remember this......"time heals everything" I have experienced people with Bankruptcy, Foreclosures, Repo's and other credit issues, buy homes, car and get loans. Eventually, you will rebound! Good luck!

Julie Lozano, Realtor
"Dream Big and Expect What You Dream"
Prudential California Realty
calljulielozano@yahoo.com

Freddie Mac will lend to a buyer that has a short sale on their record at least 24-36 months have passed considering you have improved your credit situation.

Yes, if you have a major mortgage default on your credit (the mortgage lates you described below), and on top of that your mortgage is not marked as paid in full in your credit report, then no mortgage lender in the country will touch you for quite awhile.

As to your follow-up question, it's hard to say. When you reach 90 days late, that's the normal point to initiate foreclosure proceedings. Your old lender may be backlogged and take longer, but it's very common for people in your situation to have a foreclosure initiated before a short sale is concluded. And even if your short sale does go through first, you may be in for a rude awakening when it comes to the consequences.

Do you still have household income? The best alternative for many poeple is to modify their loan to achieve affordable payments, and keep their home. Losing your home by foreclosure or short sale is a tragic last resort that should be avoided if at all possible. Please contact me if you'd like to talk about your situation. 813-600-3428.

Alma
You have a Realtor representing you that understands short sales, right?
If not, then you may be in for a tough time.

A short sale, assuming the lender agrees, is going to negatively affect your credit. Part of the negotiation with the lender is to minimize the affect on your credit. In other words before you complete this process you should know, in writing, what the outcome will be.

Normally a short sale dings your credit 80-120 points, compared to 150-200+ for a foreclosure. However, I would not expect a lender to approve a new mortgage after a short sale because you are supposed to be broke to get them to approve it in the first place.

If you need help contact me via my Trulia Profile and I will be happy to see what we can do.

Actually, I'm in the process of getting my bank to approve the short-sale of my home. I'm now completing all the package of information given to me by my agent and will be submitting it next week. So, here's my 2nd question: I am now 3 months behind and barely attempting a short-sale, am I too late? The last thing I want is this process to go into foreclosure. I'm concerned that I'm just now getting started on the SSale process considering all the information I've been reading on this website. If banks are taking 30 days (appx) to simply respond to the approval and then some more time to negotiate, at this rate it will but me into 4-5 months delinquent on my payment, will extentions be granted if there's a potential buyer? or are most cases turning into foreclosures because the banks can't get fast enough to these SSales approvals?

I was told California does not have a deficiency law....Also, because the property was owner occupied and I never did a cash-out refi or refi all together then the bank has no reason to file a judgement against me. I know laws go back and forth, but this is the info. I've been given by a couple of attorneys as well as real estate proffessionals...all this can be a bit confusing though.

Banks do not want to lend you money until at least 2 years after a short sale. However, you can possibly find a rent-to-own possibility or owner financing that would let you start to build some equity.

However, if you sold as a short sale, did you receive a written assurance that the bank will not file a deficiency judgment against you for the amount of money they lost between the sale price and what you owed? The bank has several years to file this deficiency, so you should know where you stand. Hopefully you consulted an attorney to negotiate this arrangement.

So many people are in your shoes. Sorry. Best of luck to you.