Home Buying in 91765>Question Details

Peaceandpow…, Real Estate Pro in Hurd, ME

If you short sale a house because it is worth way less than what you bought it for then should you just rent another house or move to a cheaper area?

Asked by Peaceandpowerparenting, Hurd, ME Sat Sep 15, 2012


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12 months with HUD's new Back to work program, I would recommend The Lenders Network, they can help you find a lender
2 votes Thank Flag Link Thu Oct 31, 2013
You do a short sale because you can not afford to make the mortgage payments due to extenuating circumstances, or loss of your job. Lenders will not approved your short sale, simply because you want to live in a cheaper house. Every case is different. Contact a Real Estate Agent that can answer your questions and give you advice on what will be the best for you.


Maria Cipollone

2 votes Thank Flag Link Sun Sep 16, 2012

good News under FHA You only have to wait 3 years after the short sale close date to buy again

Omar Khamisa
NMLS#: 369325
Mortgage Loan Manager
Cell: 510-648-5535
we are not a bank we 're are better
Web Reference: http://MSJMortgage.com
0 votes Thank Flag Link Thu Oct 31, 2013

The rental market was not under valued in the market as homes were. Rent did not drop 50% because of the value of the property. By saying you are moving to a cheaper area , would need more details of what you describe as a cheap area. I would describe it as a home that has less space , rooms , or is not a single family home . It can also be in a very secluded location far away from stores and highways.
Also, by moving to a cheaper area , are you saying you are going to buy or rent in another area. If you are going to buy , i would not move areas . Your short sale house was evaluated and given a value due to market and property value. So , any home in that area will have a fairly similar value and if you are comfortable and can manage paying that value = stay .

But like most have stated , you or the persons that were involved in the short sale will not be able to purchase a home with a loan anytime soon.

Thanks and good luck,

Airel H.
0 votes Thank Flag Link Thu Oct 31, 2013
Unfortunately this can only be answered by you and what is available. I think checking to see what is available in the area you are in now and also where you would like to live is the first steep and then you can make a determination as to what will be the best for you and your family.

Diana Margala
Web Reference: http://www.dianam.com
0 votes Thank Flag Link Sun Sep 16, 2012
As a general rule, renting is all you probably can do after a short sale. Buying will be difficult or impossible for at least 3 years. Therefore, rent wherever, for a rent you can afford. Even renting might be difficult because your credit will be shot. So you may have to put down a larger deposit, or even get someone to co-sign the rental agreement.
0 votes Thank Flag Link Sun Sep 16, 2012
See my answer on your other posting.

You go & rent, wherever you want to go, where it's affordable for you. Write a Cover Letter about yourself, your family, why you had a short sale "we bought a home with our great credit during the boom, our payments just became too high & we couldn't afford $4,000/mo anymore, but we can surely afford your home Mr. Lanlord for just $2,500/mo & here's why; we have great jobs, stable income, our credit just stinks, but we're working to get our credit score up, we'll make great tenants & take excellent care of your home as if it were our own". etc.

I don't look back on this same Trulia posting for answers after mine. Shoot me an email directly if you would like to talk about this further.

Emily S. Knell
562-430-3053 c
Realtor Since 1996
Realty ONE Group
100% short sale success ratio
& I can Prove it
0 votes Thank Flag Link Sun Sep 16, 2012
I have to concur withJoe and James: Buying a home right after a short sale may not be realistic.
Renting would be your option. And of course, based on your experience, make sure your rent plus other expenses are manageable and well within your comfort level.
0 votes Thank Flag Link Sun Sep 16, 2012
In most cases you will need to rent for 2-3 years until you qualify for a new loan if you want to buy again.
0 votes Thank Flag Link Sun Sep 16, 2012
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