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Peaceandpowe…, Real Estate Pro in Bell And Hurd, Paine...

Renting now want to buy later

Asked by Peaceandpowerparenting, Bell And Hurd, Painesville, OH Sun Jan 20, 2013

Short sold house. When can we buy again? 2 or 3 years? What if we want to buy the house we are renting? Advice on best way to convince the owner. We have a property manager for the house so we do not even deal with the owner.

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Good morning peaceandpowerparentig,
Ok, short sale will stay in your credit record for 7 years, but after two years you will be able to buy. In order for you to be ready i will suggest that you take a look on your current credit and start fixing and cleaning.
Please understand, that investors want people to pay for their mortgage and many wont sale due to the fact that they are creating rental income.there are few investors that will sell after they reach some level of equity and others wont sell, in my opinion sometimes is not worthy to speak to the property manager due to the fact that their job is to manage that property.

As Terry mentioned some owners will sell under their finance and when that happens believe the tenants are the first to know.

Libardo Quintero
nmls 380933
0 votes Thank Flag Link Mon Jan 21, 2013
Generally, you should be eligible for a mortgage 2 years after a short sale. You'll want to check with a lender for the specifics and requirements. Next, if you want to buy the house you are renting - the owner will have to A. "want" to sell it, and B. "be able" to sell it. If there is a sizable loan outstanding on the property, the owner may be renting it out because he/she can't sell it for enough to satisfy the remaining balance.

Regardless of if you convince the owner to sell you the property you are renting, you'd still have to qualify for and obtain the financing (unless the owner will finance you) to ultimately pay for it. Hope that helps!
1 vote Thank Flag Link Sun Jan 20, 2013
You should be able to buy in 2 years if you can prove that you are stable and have been paying your bills on time again. Do you know what your credit score is? You will need to speak with a lender. I don't know how many times I have heard the story of the renter wanting to buy from their landlord. The best thing that you can do is get your ducks in a row and simply ask the owner if he would consider selling. This may not be the first time someone has asked him or her. But you'll never know until you do. If you have an Agent or Broker that you are working with, he or she will be able to provide you with the name and address of the owner as long as it is listed.

Best of Luck,

Alex Montelongo/Broker
Coldwell Banker Star Realty
562-810-7387 Cell
BRE Lic #01456982
0 votes Thank Flag Link Tue Jul 1, 2014

I have written many articles on the subject, you can go to my profile and read some of my blogs. Please remember, not all lenders are created equal. Depending on who you talk to, most likely you will get a different answer. But in summary here is the breakdown as it applies to my company:

Shortest waiting period after a short with late mortgage payments leading up to the closing.

1.) USDA Rural Development Loan- As soon as 1 year. It appears you are possibly just outside the eligible area. Seems from S. Ridge south and east of Lane Rd and then again north of the 2 is eligible. But again, if you read my blog you can find the links to the USDA to determine income and area eligibility.

2.) VA- 2 year waiting unless your previous short sale was a VA loan.

3.) Conventional- 2 year with 20% down

4.) FHA- 3 years if you don't meet the extenuating circumstances profile i.e. Death in the immediately family, serious illness, or required job relocation in order to save your employment. If you do, I have closed these loans even with lates leading up to the closing. See comments on the blog or my recommendations.

For further information contact an EXPERIENCED local Loan Officer and see what they can do.


Best of Luck!
Web Reference: http://www.AFN-loans.com
0 votes Thank Flag Link Sun Feb 17, 2013
I believe that new standard (as of 2013) is 3 years to purchase with a short sale. 2 years had generally been the standard. It also depends on whether or not you were current on your mortgage when the short sale occurred.
0 votes Thank Flag Link Sun Feb 17, 2013
Hi Peaceandpowerparenting:

Circumstances might change... the owner may want to sell in 2 to 3 years. So it won't hurt to ask. I would suggest getting a Realtor to help get the owner's contact information and write a letter explaining your interest in 2 to 3 years to make an offer. Let the owner know that:
1.) you love the house and reasons why
2.) you intend to take care of the house as if it was your was your own
3.) you would love the opportunity to make an offer on the house if the owner is ever open for negotiations or would consider selling.

In the meantime, pay your rent on time, build a good relationship with the property manager, and report any repairs immediately such as a leak before it becomes a more costly repair.

When it is appropriate, you might want to let your property manager know that you sent or will be sending the owner a letter of interest.

Hope this was helpful! Please feel free to contact me if you have additional questions.

Louri Groves
Prudential CA Realty, Newport Beach
0 votes Thank Flag Link Mon Jan 21, 2013
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