Home Buying in 30040>Question Details

Paul Holbrook, Home Buyer in Cumming, GA

Can I buy a home after I have a short sale?

Asked by Paul Holbrook, Cumming, GA Tue May 17, 2011

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12
Paul,
FHA has the shortest minimum waiting period for purchasing a new home after a short sale. FHA currently requires that at least 36 months must have elapsed since the completion of the short sale.

Teh only exception to this rule is if there were no late payments on the previous mortgage prior to the completion of the short sale. Most lenders will not authorize a short sale unless there is at least one mortgage late, so this option will be rare.

Regards,
Rodney Mason
Sr Loan Officer / FHA 203K Renovation / HomePath Specialist
Prospect Mortgage
Atlanta, GA
(404) 591-2453
NMLS #151088
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in AL & GA
Web Reference: http://www.rodneymason.com
1 vote Thank Flag Link Tue May 17, 2011
The short answer is yes! The time limit would depend on the conditions of your short sale and when it was recorded. A loan professional is your best resource to research this with you and formulate a plan of action that will make it clear for you how and when you can obtain a home loan. I recommend Angela Morton with Silverton for all my credit challenged customers. She can tell you where you stand and how to get qualified ASAP. Its up to you to choose who works best for you. You can contact her at 770-934-0331 / 770-990-5070 or angelamorton@silvertonmortgage.com. If you need more you can reach me at 678-725-0849 or AlCaseysells@gmail.com


Al Casey
ReMax
0 votes Thank Flag Link Thu Sep 19, 2013
There are several loan programs that you can choose from. It is best to work with a professional so you can have your best choice. Check each loan requirements to know if you qualify for such.



Check if you qualify for a mortgage. Try http://www.whywaitbuytoday.com
0 votes Thank Flag Link Sat Aug 24, 2013
I had a short sale last year and my Realtor recommend http://www.cfs-mortgage.com/flex for a home loan. I am very happy to be able to purchase again.
CFS Mortgage assists homeowners who have recently been through a foreclosure, short sale or have recently emerged from bankruptcy.
0 votes Thank Flag Link Sun May 19, 2013
Paul,

To back my response up furhter I went to the trouble to look up loan guidelines for you. Your best bet would be to apply for a FHA loan or a VA loan (if you are a veteran).

You would have to have had no late payments on your mortgage during the 12 month period preceeding the short sale. We would also need to document that you are NOT taking advantage of declining market conditions.

As I mentioned in my earlier post you would also have to qulaify for a FHA loan based on your credit score, income and have the available funds to put 3.5% down and cover closing costs.

I would be more than happy to discuss any questions you may have.

Steve Mearman
Cornerstone Mortgage Group

6151 Powers Ferry Rd. NW Suite 610
Atlanta, GA 30339
Office: (678) 578-7607
Fax: (678) 324-5238
http://www.cmg-homeloans.com

Georgia Residential Mortgage Licensee – 21412
Company NMLS - 147913: Individual NMLS - 248015
0 votes Thank Flag Link Tue May 17, 2011
Yes you can! I was going to elaborate on this, but the agents/loan officers below have covered it.
0 votes Thank Flag Link Tue May 17, 2011
Buying After a Short Sale
The waiting period is 2 years. However, if a seller does not have a 60-day late pay, Fannie Mae says that seller may immediately buy another home but none of the major lenders will fund such a loan, so it's kind of a fallacy. FHA has similar guidelines but, again, major lenders are not stepping up to the plate. I have heard of isolated instances in which a seller relocated for a job transfer and moved more than a certain distance to qualify to immediately buy a home after a short sale.

However, to answer your particular question, if you have no extenuating circumstances, you will need to wait four years from the date of completion, meaning the date your deed-in-lieu of foreclosure was recorded.

In addition to the waiting period, some loans require 10% down and a minimum FICO score. The home you purchase must be your principal place of residence, not a rental nor a vacation home.

Fannie Mae constantly issues new guidelines. The above policies are in effect for loan applications submitted after August 1, 2008.
Web Reference: http://nancysheehan.com
0 votes Thank Flag Link Tue May 17, 2011
Hi Paul, small world. Yes you can buy after a short sale in 2 to 3 years. The lenders may change this at any time but last I recently heard, some were going by the 2 year mark assuming nothing else negative happened after that. Save 20% down and check your credit on my web site to see if some surprises popped up. Go in to mortgage broker armed with knowledge about what is on your credit as this will help get approved. Call me when you are ready to look. I will be glad to help. It was good to run into you the other day!!!
0 votes Thank Flag Link Tue May 17, 2011
Eventually you will be able to but it could be years and a lot depends on your credit score. If you had excellent credir and the short sale is the only blemish, then you will be able to buy a new home sooner rather than later.
0 votes Thank Flag Link Tue May 17, 2011
Yes you can, there are some options available in the market.
the question is, are you qualify for the ASSP program?
0 votes Thank Flag Link Tue May 17, 2011
Paul,

Amazingly you can buy a home after a short sale. You need to make sure you are on time with your mortgage payments during the short sale process. If you go 30 days late you will not be able to buy a home after the short sale. You will also have to qualify for a new loan based on income, credit and assets.

Please let me know if you have any questions.

Thanks,
Steve Mearman
Cornerstone Mortgage Group

6151 Powers Ferry Rd. NW Suite 610
Atlanta, GA 30339
Office: (678) 578-7607
Fax: (678) 324-5238

Georgia Residential Mortgage Licensee – 21412
Company NMLS - 147913: Individual NMLS - 248015
0 votes Thank Flag Link Tue May 17, 2011
The short answer is YES!

The long answer is, "it depends."

If you have money to put down and that's the only thing on your credit that is poor, then we can get you into a home.

Otherwise, without a creative Lease Purchase scenario, you're likely having to wait until you build up more reserves and wait about 6 months.
0 votes Thank Flag Link Tue May 17, 2011
Joshua Jarvis, Real Estate Pro in Duluth, GA
MVP'08
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