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.
ReMax Realtec Group
Palm Harbor, FL
The U.S. Department of Housing and Urban Development (HUD) recently announced the â€œBack to Work â€“ Extenuating Circumstancesâ€ 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 HUDâ€™s minimum eligibility requirements.
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
â€¢ take advantage of declining market conditions, and
â€¢ 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
â€¢ mortgage payments on the prior mortgage were made within the month due
for the 12-month period preceding the short sale, and
â€¢ 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 FHAâ€™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
â€¢ default was due to circumstances beyond the borrowerâ€™s control, such as
death of primary wage earner or long-term uninsured illness, and
â€¢ a review of the credit report indicates satisfactory credit prior to the
circumstances beyond the borrowerâ€™s control that caused the default.
FLORIDA BAD CREDIT MORTGAGE PROGRAMS INCLUDE:
No Seasoning after a short sale or foreclosure.
Up to 80% Loan to Value.
Credit Scores Start at 500
Loans up to 1 Million.
WE APPROVE FLORIDA BORROWERS TO PURCHASE 1 DAY AFTER A FLORIDA FORECLOSURE SHORT SALE OR BANKRUPTCY FILING.
PORTFOLIO ADVANTAGES INCLUDE:
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.
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.
Best of Luck.