Home Buying in Hercules>Question Details

Claire Morris…, Home Buyer in Martinez, CA

We let our home go as cash for keys basis. I'm told that this does not count as a foreclosure. How long do we have to wait before buying another home?

Asked by Claire Morris Dobie, Martinez, CA Sun Jul 8, 2012

Is VA financing available on foreclosure homes?

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BEST ANSWER
Who told you that?

If you had a debt, that you were behind on; it was reported to the Credit bureaus.
If you did a "Deed in Lieu" becuase you couldn't pay your mortgage, then it was reported as a "less than" what was owed debt.

You would have to look on your Credit Report to see how it was reported, and it would be up to the Lenders, as to how long you will have to wait; probably two years.

good luck and may God bless
0 votes Thank Flag Link Sun Jul 8, 2012
Thank you, Ron. I have so many different answers. Our VA lender tells me two years is sufficient. Our credit is in the high 600s and VA requires only 640 or higher. If VA is going to finance, and says the cash for keys is acceptable, is the bank a factor? Also, we declared bankruptcy i--discharged in 2010. Does that have any effect on these different answers? Thank you again.
Flag Sun Jul 8, 2012
If the bank took your house, whether they gave you cash for keys or not, it still counts as a foreclosure,
1 vote Thank Flag Link Sun Jul 8, 2012
Were you delinquent on your mortgage before you turned in your keys for cash? If not, and you are not in default on any other debts, you may be able to buy again soon. Contact a reliable lender for advice.
0 votes Thank Flag Link Thu Feb 21, 2013
Claire,
You may want to check your credit report.
Cash for keys comes after the foreclosure or during the deed in leiu which is the same as a foreclosure credit wise. If you had short sold in 2 years you could have purchased a home. Now you will need to wait around 5 - 7 or 10 years and re establish credit.

Harold Sharpe - Broker
So Cal Homes
(951) 821-8211
harold@southerncaliforniashortsale.org
http://www.southerncaliforniashortsale.org
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Sun Jul 8, 2012
If your housed was foreclosed its 3-7 years.
0 votes Thank Flag Link Sun Jul 8, 2012
Oh goodness...who told you that?

Cash for keys means you were offered some money to vacate the property and turn over the keys to the bank.

Deed in lieu of foreclosure --- whether or not the bank gave you money to vacate --- is still the same thing as a foreclosure. The difference is that you were spared the trauma of being forcibly evicted.

How long before you can buy another home? Many factors to consider.....but under normal circumstances, probably 7 years. But if you don't repair your credit by paying down your debts, or by paying other bills in time, it could be longer.
0 votes Thank Flag Link Sun Jul 8, 2012
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