Home Buying in 34711>Question Details

Kyjoe, Home Buyer in 34711

Options for Post Short Sale home buyers. We are 6 months after our short sale, credit is recovered back to 670 and good income.

Asked by Kyjoe, 34711 Wed Jun 6, 2012

Looking in the Orlando / Clermont area.

Help the community by answering this question:


Post short sale and foreclosure buyers will represent an increasing portion of active home buyers. This market segment will not be ignored as Steve's response suggests.

Yes, your situation does require getting outside the box a bit, but really does not present a significant challenge.....PROVIDING
1. you have a substncial down payment
2. you have good cash flow

You may find it beneficial to work with a multi-dimensional real estate agent who recognizes there are more than 20 ways to sell a home and 15 ways to finance one. They won't blink an eye when they hear you are emerging from a short sale.

As others have suggested, waiting three, four or five years can be an alternative. But who knows what rules the banks will have in place at that time.

Best of success in finding your new home.
Annette Lawrence
ReMax Realtec Group
Palm Harbor, FL
0 votes Thank Flag Link Wed Jun 6, 2012
Yes you do qualify now for a new program for FHA by HUD for people with a short sale you just need 12 months from the date of the short sale or foreclosure.

The U.S. Department of Housing and Urban Development (HUD) recently announced the “Back to Work – Extenuating Circumstances” program, aimed to help people who have lost their home through foreclosure, short sale or bankruptcy. HUD has reduced the previously required minimum of 36 months to 12 months before they may be able to finance another home, given that they meet HUD’s minimum eligibility requirements.
1 vote Thank Flag Link Sun Sep 1, 2013
It depends on the circumstances and the type of loan you had and the type of loan you are applying for. I copied this from FHA’s 4155:

A borrower is not eligible for a new FHA-insured mortgage if he/she pursued
a short sale agreement on his/her principal residence simply to
• take advantage of declining market conditions, and
• purchase a similar or superior property within a reasonable commuting
distance at a reduced price as compared to current market value.
Borrower Current at the time of Short Sale

A borrower is considered eligible for a new FHA-insured mortgage if, from
the date of loan application for the new mortgage, all
• mortgage payments on the prior mortgage were made within the month due
for the 12-month period preceding the short sale, and
• installment debt payments for the same time period were also made within
the month due.

Borrower in Default at the time of Short Sale
A borrower in default on his/her mortgage at the time of the short sale (or preforeclosure
sale) is not eligible for a new FHA-insured mortgage for three
years from the date of the pre-foreclosure sale.

Note: A borrower who sold his/her property under FHA’s pre-foreclosure
sale program is not eligible for a new FHA-insured mortgage from the date
that FHA paid the claim associated with the pre-foreclosure sale.

Exception: A lender may make an exception to this rule for a borrower in
default on his/her mortgage at the time of the short sale if the
• default was due to circumstances beyond the borrower’s control, such as
death of primary wage earner or long-term uninsured illness, and
• a review of the credit report indicates satisfactory credit prior to the
circumstances beyond the borrower’s control that caused the default.
1 vote Thank Flag Link Wed Jun 6, 2012
If you kept your payments current during the short sale process, you MAY be able to qualify for a mortgage within 6 months after your short sale. The best thing to do is talk to a mortgage banker, not one of the big banks,but a local banker that specializes in writing mortgages. I have a few I can recommend to you that have done amazing with my past clients.
0 votes Thank Flag Link Fri Oct 31, 2014
Alot of mortgages will ask the following.... You will have to prove what happen to the amount that was written off with your short sale, show you were not late in the last 2 years with your short sale and show current income and financials that the problem that got you into the short sale has been solved.
0 votes Thank Flag Link Sat Jul 26, 2014


No Seasoning after a short sale or foreclosure.

Up to 80% Loan to Value.

Credit Scores Start at 500

Loans up to 1 Million.




One Day Out of Foreclosure, Short Sale or Bankruptcy

Credit Scores Starting at 500

Florida Owner Occupied, 2nd Home or Investment Properties

30 Year Fixed Mortgage with NO Prepayment Penalty

Loans up to $750,000.00

Max Debt to Income is 50%

Max Loan to Value is 80%

Rates Start at 7.5%

Gift Funds are Allowed up to 6% On a Primary Residence

Property Types Allowed - Single Family Home, Townhome & Condo

24 Months Bank Statements Allowed For Self Employed Borrowers

Foreign Nationals Allowed

Most borrowers understand that your credit score takes hit after foreclosure or bankruptcy and they expect to pay slightly higher interest rates for a bad credit mortgage. Smart bad credit homebuyers see the value in buying VS renting and want to buy immediately after a foreclosure or bankruptcy. Then after 2-3 years of timely payment history you can get out of the refinance out of the bad credit Florida mortgage into and FHA mortgage a the best rates available.

0 votes Thank Flag Link Sat Jul 26, 2014
You may be able to purchase. I have a couple lenders that specializes in working with post short sale customers. Before you begin looking, you should speak with a lender so that you know exactly what YOU qualify for. I have had 2 clients who short sold their homes. They were each given incorrect information and tried to move forward on purchasing. Both sales failed as they were not really qualified at the time they made their offers.
I would hate to see you be given the wrong informaiton. Please contact me if you would like referrals to these lenders who will be able to assist you.
0 votes Thank Flag Link Thu Sep 19, 2013
Hi, I have a mortgage broker that will put you right into another home after a short sale as long as you were current on your mortgage at least 1 year before the short sale.
0 votes Thank Flag Link Thu Sep 6, 2012
Try a credit union. GTE C/U gave a mortgage to my tenant after he closed his short sale about 2 months earlier. He did have a solid job history and also 20% down.... and a bankruptcy..
0 votes Thank Flag Link Fri Jun 8, 2012
Thanks everyone for your information. We are probably going to wait the 2 year down time and then go after conventional loans as needed.
0 votes Thank Flag Link Wed Jun 6, 2012
Fha will allow a borrower to purchase a home after a shortsale as long as there were no lates within the 12 months prior to the shortsale. If so you will have to wait 3 year. USDA is available as long as you aren't over the USDA income/asset limit. Pillar Homes has a beautiful inventory home with pool in Pillars Risge off Lakeshore, all closing costs paid by Builder. Call me for more info 352-267-4754
0 votes Thank Flag Link Wed Jun 6, 2012
Unfortunately KEL advised us (bad advice as it turned out) not to keep up payments as it would slow the SS process.
0 votes Thank Flag Link Wed Jun 6, 2012
Your best option is to talk to several competent loan officers/mortgage brokers in your area. This way, you can prepare yourself on the road back to homeownership if you can't qualify now.

Best of Luck.

0 votes Thank Flag Link Wed Jun 6, 2012
Did you keep your payments current while negotiating the short sale? If so, you MAY be able to qualify for a mortgage. the best thing to do is talk to a mortgage banker, not one of the big banks,but a local banker that specializes in writing mortgages. They will be able to tell you EXACTLY what you can do today, and if not when, and what you need to do in the interim. If you don't know a local mortgage banker, call a realtor and ask to be referred. We are here to help!
0 votes Thank Flag Link Wed Jun 6, 2012
Hi Kyjoe. To answer your question, typically it takes a minimum of 2 years post short sale to repurchase another home. FHA and VA guidelines are 3 years post short sale. You have done a great job re-establishing your credit and maintaining your income. I applaud you! Their are many new mortgaga programs available to assist you. Your first step is to give me a call 352-242-3939. I will put you in contact with an outstanding mortgage lender. He will be upfront with you and tell you what you need to do to purchase. I look forward to working with you and helping you and your family find your dream home. Visit my website at http://www.donaldtoldson.com.
0 votes Thank Flag Link Wed Jun 6, 2012
Good morning! As there are general guidelines for mortgages, each scenario is different, each buyer is different. Have you called a mortgage lender/broker, credit union to have the pre-qualify you and give you an honest answer as to timing for you? If you need help with a finance person, I do have a few people that I can refer you to that will either get you pre-qualified for a loan, or be upfront with you and let you know what you need to do and how long it will take to actually get to that point. Feel free to call, text, or email me and hopefully we can get you started on finding your new home!
0 votes Thank Flag Link Wed Jun 6, 2012
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