Carebear2, Renter in California

We just short sold our home, and are in a 2 yr lease in Rancho. How good are our chances of purchasing again when our lease is up?

Asked by Carebear2, California Mon Apr 22, 2013

We really took a credit beating trying to get a loan mod, and finally gave up and sold short. The house that we are now leasing is much nicer than our old house and rent is far cheaper than our note was. We think we are interested in buying again, but now it looks like the investors have simply bought up many of the homes and are renting them out. Maybe the community will become mainly renters? What is your opinion?

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Answers

8
To answer your first question, your chance is really good to purchase again! However you will need to wait for the short sale to season. The current seasoning is 3 years but lending guidelines are always changing. The most important thing is to keep your remaining debts current. When planning a new purchase the loan underwriter will look at your past performance as the best indicator of future performance. If all of your debts are paid on time you should be fine. If you are not sure about your credit sign up for a service that will monitor your credit for you.

As to your 2nd question, yes there are many investors out here purchasing many of the homes but there are still many homes being purchased as the buyers primary residence. Prices are still low and interest rates are great. Keep up your credit and when your ready to buy again look for a REALTOR who will work hard for you.

Good Luck!

John L Johnson II
CA DRE Broker Lic# 01312900
REALTOR®
J-N-J Real Estate Services, Inc.
8560 Vineyard Ave. #404
Rancho Cucamonga, CA 91730
(909) 224-2091
1 vote Thank Flag Link Mon Apr 22, 2013
That's ok, there are still options. I've helped people find properties that have seller financing and there are some things you should start working on as far as your credit... Simple things you can do to help it a lot. Give me a call when you have time and we can set up an appointment to I can go over some of these and other choices with you.
0 votes Thank Flag Link Thu Apr 25, 2013
Thank you very much to everyone that answered. I guess I should add without going into the complete details, that we were in foreclosure for over 4 years during the loan mod process and just before we gave up completely, I filed a Hail Mary bankruptcy to try to buy time for Wells Fargo to complete the last promised loan mod that was running concurrently with a bank sale action! I haven't looked at my credit because it's got to be under a toilet at this point! The only debt we have however, are our car payments, rent and utilities. I did not complete the bankruptcy so it was dismissed quickly, but the damage I'm certain is extensive. The two year lease allows us to rebuild our credit a bit by making every single payment on the 1st of the month, and not buying anything, and I mean anything on credit.
0 votes Thank Flag Link Thu Apr 25, 2013
Hi, I actually did a shortsale for a couple that closed 3 months ago or so and then helped them buy a home which we just closed a month ago. It all depends on the circumstances and your situation. Feel free to call me when you have a moment. I can help you go over your options. Believe it or not, your options may and probably aren't as bad as you think they are. If you click on my photo, you can see my profile here and my contact info as well. :)
0 votes Thank Flag Link Thu Apr 25, 2013
Hello Carebear,

Yes, you can possible purchase another home in two years. You will need 20% down for a conventional loan in that two year period. In three years you are considered a first time home buyer and can also qualify for an FHA loan. But, You must re establish your credit. Which is not that difficult if you start now. I specialize in short sales and have past client's that are now homeowners again
If you have further questions on building your credit. please feel free to contact me. 909-809-2317 or ClydeProxrealEstate@gmail.com

Thank you,

Clyde Prox
0 votes Thank Flag Link Mon Apr 22, 2013
Hi Carebear2,

I'm sorry that you needed to short sale your home. Waiting period for getting a house after a short sale for FHA loan is three years, for VA loan is two years. Please make sure that during this waiting period you never have any late payments on your credit card. True investors are buying a lot and unfortunately there is no way to predict if Rancho Cucamonga community will mainly be a rental community but that seems unlikely. When you are ready to buy either email me at sales@daycreekrealty.com or call me direct at 909-200-9280. Day Creek Realty gives "cash back" to all buyers after close of escrow. Thank you.

Caroline Barooshian
Real Estate Broker/Realtor®
DRE #01067678
Cell 909-200-9280
DAY CREEK REALTY
Rancho Cucamonga, CA
Email: sales@daycreekrealty.com
0 votes Thank Flag Link Mon Apr 22, 2013
Hi there,

Typically, it is three years that you will have to wait to be able to purchase again. However, it all depends on your credit as well-what it looks like then.

You are correct that investors are buying homes and renting them out. I cannot tell you if your community will become mostly renters. I wish I had a crystal ball, but I don't. However, I can tell you that there are more and more rentals out there due to the investors buying and holding on until prices come back up.

Joan Patterson, B.A., G.R.I., Realtor, License #01431647
Keller Williams Realty
951-204-1864
0 votes Thank Flag Link Mon Apr 22, 2013
Good morning.

Three years is the rule of thumb lenders will go by, though many state less, in extenuating conditions, such as medical issues, loss of income, etc.

Best of Luck;

Christina Solorzano,
CEO & SR Credit Repair Specialist of
Everlasting Credit Repair
http://www.everlastingcredit.com
0 votes Thank Flag Link Mon Apr 22, 2013
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