Home Buying in 97103>Question Details

paleoanth, Home Buyer in Astoria, OR

Lending 2 years after a short sale

Asked by paleoanth, Astoria, OR Fri Aug 31, 2012

More than 2 years after a successful short sale, with 660 scores, we are denied loans because GMAC required that we exceeded 120 days late to qualify for the short sale. GMAC noted "pre-forclosure had begun" in the comments to credit agencies, after stating "short sale accepted as a payment in full"
We have 20% down to place on a home, but we are $1700 above the USDA requirements in a rural area. Secure jobs, credit scores are ready and.... denied.
In Oregon, anyone know of a lender who will work with this type of situation?

Help the community by answering this question:


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.
0 votes Thank Flag Link Wed May 8, 2013
Fannie Mae's guideline on short sale says that if you have 20% down you can get financing after two years. That said, the credit score created by the late payments on the mortgage is probably fairly low. If , however, the rest of your credit stayed in tact during the short sale process this seems explainable and within the guidelines as long as you meet all the other criteria for a home loan.

I would look for a company that sells directly to Fannie Mae and services their own loans. Many mortgage companies sell but do not service mortgages and are subject to the "overlays" their investors have in their guidelines. Overlays are guidelines that are in addition to the Fannie Mae requirements that may make it harder for you to get qualified.

I can help you if you have any additional questions. Feel free to contact me at 541-342-2535.
0 votes Thank Flag Link Sat Sep 1, 2012
The key factors are credit score and date of completion of the short sale. Your final HUD from escrow on the short sale will be the record of completion. If your credit report is not accurately reporting the home disposition as a short sale, then the HUD is also a way to correct this. You can qualify for an FHA loan 3 years after short sale completion date, a 620 middle credit score, and 3.5% down payment. You can qualify for Conventional financing 2 years after completion date, a 620 middle credit score, and minimum 20% down payment.
Are you or your spouse a veteran?
tony jacobs
Home Team Funding/Pinnacle Capital Mortgage Corp.
MLO #63443
0 votes Thank Flag Link Fri Aug 31, 2012
I can't speak to the issue with GMAC and their reporting, but if anyone can get the job done it's Kathy Israel with Guild Mortgage here in Astoria. Her number is 503-325-2415. Good Luck!
0 votes Thank Flag Link Fri Aug 31, 2012
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