Home Buying in Sacramento>Question Details

Karijcksn, Home Buyer in Sacramento, CA

Purchasing a home after short sale.

Asked by Karijcksn, Sacramento, CA Sat May 18, 2013

I had a short sale 18 months ago. Some people have been telling me i can buy again after two years while others say three years. Which one is it?

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Answers

23
kirksharon14’s answer
FHA Back To Work Program waives Foreclosure, Bankruptcy, And Short Sale waiting periods. Borrowers who lost their homes due to foreclosure no longer have to wait 3 years to apply for a new loan. Check out http://www.whywaitbuytoday.com for more details.
0 votes Thank Flag Link Sun Dec 1, 2013
Great News for Current Approved States: CA, WA, OR, AZ, NV, MT, NC, NY, HI.
We have Exciting News for Consumers and Real Estate Agents.

I have the Solution for anyone who has had a Foreclosure, Short Sale or Deed in Lieu.

See below are many options for every type of Consumer to Achieve the American Dream.

I can assist anyone who has had a Short Sales or Foreclosure or Deed in Lieu, With NO waiting period at all. They can Purchase or Refinance the Next day with a mid FICo score of 660 and 20% down to a max of 1 Million Loan amount. 25% down to 2 Million and so on… Prior Mortgage late payments are acceptable and this is our own in-house Portfolio Products and is NOT hard money.

Additionally, we have 7 other in-house Portfolio Products that are designed for all types of consumers that want to purchase and or refinance their existing home.
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Here are some of our program highlights.

We have the 2nd Chance Loan with No Seasoning Period, for those who have had a Foreclosure, Short Sale of Deed in Lieu. This Program is for Purchase and or Refinance.
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Michael Evans
Sr. Loan Officer
Pactrust Bank
510-455-4109
Michael.Evans@pactrustbank.com
NMLS 251165
1 vote Thank Flag Link Sat Oct 5, 2013
One day after Short-Sale with us!

You must have a 660 credit score and at least 20% down. This is a "Portfolio Loan" that is manually underwritten with common sense.

Let me know if I can help!

Thanks
1 vote Thank Flag Link Thu Sep 19, 2013
I had a buyer that wanted to buy a home in Arizona, but he had a Chapter 7 bankruptcy 7 months ago. I introduced a loan program at http://www.cfsflex.com, they allow a mortgage after a foreclosure, short sale, or bankruptcy. There is only a six month waiting period. This is perfect for individuals looking to become homeowners again.
1 vote Thank Flag Link Sun Jul 28, 2013
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.
1 vote Thank Flag Link Sat May 18, 2013
The general guidelines are 2 years for conventional financing and 3 years for FHA, so both are correct.
1 vote Thank Flag Link Sat May 18, 2013
Knowledge is Power for Consumers to make the right decision as things change.
Here is some valuable news.
The Weekend of August 16th Fannie Mae will update Desktop Underwriter® (DU®) Version 9.1. So, What Does this mean?
It means a lot and the most Significant is that "The waiting period requirements for Fannie Mae borrowers who have had a previous deed-in-lieu of foreclosure or preforeclosure sale are being updated to now require a four-year waiting period".
There is more you can read about this online.
I am proud to say that my Company has provided a Solution for Clients that have had 1 Short sale or 1 Foreclosure or 1 Deed in Lieu and Want to Purchase Or Refinance a Primary Residence in AZ, CA, DC, FL, HI, IL, MD, MT, NV, NY, NC, NJ, OR, SC, VA, WA, They Do Not have to wait 2 - 7 years as they can Do it Now.
No waiting period at all.
Share this with anyone you know that wants to get back home or reposition their existing.
0 votes Thank Flag Link Thu Jun 26, 2014
You can buy a home two years after short sale with a conventional loan and 20% down. If you wait three years you can buy with an FHA loan and only put 3.5% down.

Jared Leichliter
Mortgage Wholesale Network
888-842-4452
http://HomeAfterShortSale.myinstapage.com
0 votes Thank Flag Link Thu Jun 5, 2014
You can buy after two years with a conventional loan if you have 20% for a down payment. If you wait three years you can buy with an FHA loan and only put 3.5% down.

Jared Leichliter
Mortgage Wholesale Network
888-842-4452
http://HomeAfterShortSale.myinstapage.com
0 votes Thank Flag Link Thu Jun 5, 2014
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.

This loan is available in - AZ, CA, CO, DC, FL, HI, IL, MD, MT, NV, NJ, NY, NC, OR, SC, VA, and WA
0 votes Thank Flag Link Thu May 22, 2014
There are some new guidelines for FHA loans which require only a 3.5% down payment that were just announced recently that reduces the waiting time to 1 year for people that experienced a short sale or other financial hardship... please watch the attached video that I did recently explaining the new program.
http://frankvernirealtor.com/fha-reduces-foreclosure-bankrup…

Conventional Lenders are also making some changes to their guidelines to make it easier to get a loan for a new home after a short sale.

Please contact me if I can be of any further help.

Have A Great Day!
Frank J. Verni
Broker / Realtor
DRE # 01390255
916-719-6161
realtorfrank1@gmail.com

http://www.RealEstateHelpbyFrank.com
0 votes Thank Flag Link Fri Sep 20, 2013
Most lenders will require that you wait 3 years before getting an FHA loan with 3.5% down, or 2 years for conventional financing with 20% down.

Regards,
Chad Roberts
Broker/Salesperson
Realty One Group
0 votes Thank Flag Link Thu Sep 19, 2013
Yes in California you can buy a home after a short sales or foreclosure and I can help.
I have our own Portfolio Products and we allow Consumers to purchase a primary residence in California with NO WAITING Period, with 20% down payment and a 660 Mid FICo Score.

Avoiding FHA is the way to go as the FHA Mortgage Insurance (MI) is very high and now the MI never goes away.

Contact me if you would like to discuss further and go over your preapproval.

Sincerely
Michael Evans
Sr. Loan Officer
PacTrust Bank
925-497-2501
NMLS 251165
0 votes Thank Flag Link Fri Sep 6, 2013
K: URGENT! PLAY THE OFFENCE HERE!!

You must look at your credit report!!
All three bureaus must report you as a short sale. We are seeing some short sales being reported as foreclosures. The borrower must then go back to the lender and have them correct the status with the bureaus.
If Equifax is one of the bureaus reporting incorrectly, the coding will be corrected, but the date of last activity will be updated to the date that the correction was made on the report. Your short sale waiting period will reset from that date of 'last activity' reported by Equifax and your two or three year waiting period will commence from there.
This is a critical piece. Call your lender TODAY and pay to have them pull a 'Merged' report for you. Check the complete status of that trade line.
0 votes Thank Flag Link Mon May 20, 2013
It's so exciting to see former short sellers get back into the market. If you don't have the minimum 20% down for a conventional loan or qualify for a VA loan, you'll have to wait 3 years to qualify for FHA financing. If you are buying in an area where USDA financing is available (see link below to check for property eligibility), you may even be able to buy sooner (there are income limits). As far as how much money you will need to save is concerned. VA & USDA loans have a 100% financing option, but don't forget that you'll have to pay for closing cost. A lot of people don't think about the closing cost that have nothing to do with the down payment amount. There are recurring and non-recurring closing cost. The recurring closing cost refer to money you pay at the close of escrow in advance (e.g., taxes, insurance etc.). Non-recurring closing cost refer to one time only charges (e.g. lender origination fee, processing fee, appraisal fee, etc.). Expect to pay approx. 3% of the purchase price and make sure you discuss those closing cost with your loan agent. It's a good idea to start working with a loan agent now as good loan agents can give you tips on how to improve your credit score. Use the time you have before you are ready to buy to put yourself in the best possible buying position all the way around.
0 votes Thank Flag Link Sun May 19, 2013
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
Contact
My clients usually continue making their payments so they may be in a better situation. My lender seems to think that they will be able to lend on a FHA loan and it has only been one year. I should know more within a couple of weeks. They did not short sale due to a financial hardship but did because there was too much crime near their home.

Good Luck!

Michelle Thompson
Realtor Lyon Exec. Assoc.
EDCAR Top Producer
SFR
916-804-2981
DRE 01850154
0 votes Thank Flag Link Sat May 18, 2013
Avoiding FHA is the way to go as the FHA Mortgage Insurance (MI) is very high and now the MI never goes away.
I have our own Portfolio Products and we allow Consumers to purchase a primary residence in California with NO WAITING period, and they need 20% down and a 660 Mid FICo Score.

Contact me if you would like to discuss

Sincerely
Michael Evans
Sr. Loan Officer
PacTrust Bank
925-497-2501
NMLS 251165
Flag Fri Sep 6, 2013
Eddie,
My price range will be around $250k. I just paid of my debt so i am just now starting to build up my savings. I do not have enough for a down payment yet. I am really trying to plan for when that time comes so i know how much i need to have saved.
0 votes Thank Flag Link Sat May 18, 2013
What purchase price home are you looking to purchase next? What down payment do you have available?
Your answers will determine when you can next purchase.
0 votes Thank Flag Link Sat May 18, 2013
You're going to get a different answer depending on who you talk to. For example, if you would have called me last July, you would have most likely been in a home another home. Prior to August of 2012, FNMA had NO RULE or RESTRICTION for homebuyers wanting to purchase a home after a short sale. I wrote Blog after Blog trying to get the word out, but very few people believed me or even heard me. Why? Because although FNMA had no such rule, 95% of the banks and lenders out there had their own overlays that so their Loan Officers were stating a 2 years waiting period, so most people got misinformation.

Now that Freddie and Fannie have changed your guidelines and now require a 2 year waiting period AND 20% Down, most people find themselves sidelined. As far as other options, FHA is 3 years unless you didn't miss any payments, VA is 2 years, and USDA is 1 year after a short sale. Those are the facts! Any Loan Officer who can't do at least what I have listed above, needs to change companies and come to work for me, or quit writing false and misleading comments.

Please feel free to click on the link below and read my article, then read some of the comments. You'll see first hand how many families I have been able to help. Or click on my Profile and read some of my Recommendations. Like my Grandmother always said, "The Proof is in the Pudding". I hope I have been helpful to you. If so please let us know.

Best of Luck!

http://www.trulia.com/blog/george_raymondo/2011/04/can_i_buy…
Web Reference: http://www.AFN-Loans.com
0 votes Thank Flag Link Sat May 18, 2013
Hello

It is two years for a conventional loan and three years for a FHA loan.
0 votes Thank Flag Link Sat May 18, 2013
This seems to be one of those arbitrary things; I doubt that there is Federal Mandate nor any kind of an Industry standard.
Probably decided by some guys, sitting around a smoke-filled room.

Will this "standard" remain in effect? Who knows.
Will Lenders relax the standard because they are competing for customers, and too many of them have been forced out of the market? Undoubtedly!
0 votes Thank Flag Link Sat May 18, 2013
Everyone below is correct - It is simply 2-3 years based on your financial situation and type of loan and downpayment you can handle.
Check with a reputable lender/bank and they can look at your credit profile to give you an idea of what to expect..

Have A Great Day!
Frank J. Verni
Broker / Realtor
c. 916-719-6161
DRE # 01390255
realtorfrank1@gmail.com
For additional Information visit http://www.RealEstateHelpbyFrank.com. Like me on Facebook

Experienced Broker/Agent Implementing Honesty and Integrity helping Sellers
and Buyers to Reach their Financial Goals – I Know What To Do!!
GET A FREE HOME VALUE ESTIMATE! CLICK HERE!
0 votes Thank Flag Link Sat May 18, 2013
Depends on your credit score and circumstances around the short sale. Two years is what most experts say is the minimum time before you can purchase another home. Check with a reputable lender/bank and they can look at your credit profile to give you a timeframe.
0 votes Thank Flag Link Sat May 18, 2013
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