Home Buying in 11226>Question Details

Temra Bellan…, Real Estate Pro in New York, NY

How quickly after a short sale can one purchase a home? I am considering a strategic default as my home is over 100k underwater.

Asked by Temra Bellanton, New York, NY Mon Mar 12, 2012

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0 votes Thank Flag Link Tue Jun 12, 2012
You don't have to wait.....

We have a portfolio "2nd Chance" loan 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. Late payments acceptable.

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 +

MORE INFO - http://cbosse.banchomeloans.com/2014/02/20/how-to-get-a-jumb…
0 votes Thank Flag Link Thu May 22, 2014
This is one of those questions that should really not be answered by looking on line because there are so many variables. For someone who can't make the mortgage payment for the duration of the short sale the waiting period can be 2 years or more. If you keep your payments current, have a steady job, have low credit card debt, etc. you may be able to purchase another home in 6 months.
The best advice I can give you is to go and get good advice.
Contact a knowledgeable realtor, share your financial situation with her/him, speak with your lender and develop a plan that you can live with not only for the short term, but the long term.
Good Luck and stay positive.
0 votes Thank Flag Link Thu Feb 13, 2014
Typical waiting period is 2 years but there are some exceptions. Check if you qualify for mortgage. Try http http://:www.whywaitbuytoday.com
0 votes Thank Flag Link Tue Aug 13, 2013
CFS Mortgage, http://www.cfsflex.com, has a flexible loan program. They allow a mortgage after a foreclosure, short sale, or chapter 7 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 27, 2013
depends on how it was reported to the credit bureau. I would attempt to negotiate with your bank to report the short sale as paid in full.
0 votes Thank Flag Link Sun May 12, 2013
Normally at least 2 years after short sale but thre are some exceptions so may talk to a mortgage banker to find your situation.
0 votes Thank Flag Link Sun Feb 10, 2013
Normally 2-3 years . But there is some exception, You may talk to a mortgage broker to find out your situation and your waiting for buying.
0 votes Thank Flag Link Mon Jun 11, 2012
It really depends on how you do it? How bad you damage your credit?

Sometimes 2 years or more.

Some home owners do a short sale with out really missing payments. Others stop paying their mortgage completely untill the short sale is complete.

When home owners stop making their payments completely it hurts their credit the most. it will probably take mpore than 2 yrs.

It willl probably be a great idea if you sit down with a professional and they analyze your situation step-by-step. you need to know the pros and cons of the short sale process.

I have been helping hudreds of clients in your situation, and i am able to analayze and break down the situation clearly for you.

Office: 213-417-3898
Cell: 310-486-2132
Fax: 877-310-3002
0 votes Thank Flag Link Wed Mar 21, 2012
Be careful with a "strategic default", Just because your home is underwater & you go the short sale route you may be liable for the difference in the amount you owe and the amount of the sale. Based upon your ability to pay you may get a 1099 or a judgement to pay. In answer to your question, I've found it's usually 2 years based upon the amount of time on the credit report, although if your credit has taken other hits it maybe longer.
0 votes Thank Flag Link Wed Mar 14, 2012
I just had a closing a few weeks ago and the buyer had a short sale less then a year ago. Here's how. First, she paid her mortgage on time every month prior to closing on her short sale. Second, she was moving to a different geographical location. She had moved from MN to NY. This was an important part of her getting a mortgage so soon. Without the location change, it could take 2-3 years. Some agents and short sale companies recommend that you stop paying your mortgage to force the bank to deal with you. Their logic is that you are not going to get any money from the sale so why not save your money. This is true to a degree, but it will kill your credit and it's quite possible you won't be able to buy another place for years. If you want to buy another home, keep up with your current payments. The situation I described above is real and the closing took place three weeks ago. Hope this was helpful.
Web Reference: http://www.nyhomeseller.com
0 votes Thank Flag Link Tue Mar 13, 2012
"it depends on how it is reported on your credit report. may not be any waiting period"

That's completely false information. If you do a short sale and even if it didn't report on your credit report you must disclose it or it's fraud. There is no program with no waiting period for someone that does a strategic default other than hard money or other private financing and those have nothing to do with the way it's reported on a credit report.
0 votes Thank Flag Link Mon Mar 12, 2012
it depends on how it is reported on your credit report. may not be any waiting period
0 votes Thank Flag Link Mon Mar 12, 2012
2-3 years, but I have seen sooner with certain loan programs.
Web Reference: http://www.homesbyminna.com
0 votes Thank Flag Link Mon Mar 12, 2012
Time frames for purchasing after short sale.
Note that you won't be eligible for the FHA exception because a "strategic default" will disqualify you.

Fannie Mae will allow you to purchase a home 2 years after a short sale with a 20% down payment and 4 years after with a 10% down payment, with re-established credit. If there were documentable, extenuating circumstances, you may be able to buy after 2 years with 10% down.

FHA has a 3 year waiting period after short sale, however, you may be eligible for a new FHA loan immediately after a short sale if:
o All mortgage payments due on the prior mortgage were made within the month due for the 12 month period preceding the short sale and,
o All installment debt payments for the same time period were also made within the month due.
Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to:

o Take advantage of declining market conditions, and
o Purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.

Borrowers in default on their mortgage at the time of the short sale are not eligible for a new FHA-insured mortgage for three years from the date of the pre-foreclosure sale.
0 votes Thank Flag Link Mon Mar 12, 2012
Temra, the current turn around time to purchase after a short sale is 3-4 years, as compared to a bankruptcy which is 7 years.

Please talk to a mortgage broker/banker who can give you the best advice on this topic.
0 votes Thank Flag Link Mon Mar 12, 2012
Temra, You need to figure out your best course of action. I have seen mortgages reduced by over 200k. Give me a call if you want addl. details. Good luck!
Web Reference: http://vaughnweberlaw.com
0 votes Thank Flag Link Mon Mar 12, 2012
Usually in a foreclosure sale , at least 2-3 years, some lenders if you are not delinquent on payments and have a good credit history 12 month's prior to a short sale are able to finance a loan much sooner.
0 votes Thank Flag Link Mon Mar 12, 2012
Hi, it depends on the reason for your shortsale, figure about 2-3 years. It could be sooner depending on your reason and the type of loan you apply for.

0 votes Thank Flag Link Mon Mar 12, 2012
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