It would seem to me that since the mortgage business has been largely neutered with regard to options, a few minutes on Google and few phone calls to mortgage companies will give you better answers than you're likely to find here.
The OIC has been investigating strategic default, rumor has it that they are also poking around with owners hiding assets and misrepresenting facts during shorts and distressed liquidations - http://hankmillerteam.com/2012/11/05/are-mortgage-cops-pursu The issue of mortgage fraud remains on the burner.
This is far too broad a question and best answered directly by a lender.
On a more positive note â€“ keep searching. As time passes, assuming that your credit is otherwise good, you will be able to get a mortgage. Rules keep changing. Mortgage lenders have to put their money to work and you may be considered a better risk with 20% down than another potential buyer who has a much smaller down payment.
The start rate is 9.5%. As she mentioned, there is no prepayment penalty, so you can refinance after your sentence is up. Fees associated with private lenders range from 3 to 8 percent of the loan amount and can be financed into the loan if there is equity to do so. Otherwise, the seller can pay it (there is no maximum limit as to what the seller can pay).
The amortization is 30 years and balloons in 5 years. You don't want to go any further out than you have to, so there's no reason to offer 12. Our goal is to get our money back as soon as possible, so we'll always be looking for ways to finance you into a better interest rate.
It will be hard to find Mortgage Brokers anymore. The laws passed by the President pretty much wiped them out. Most loan officers are employed by banks and the restrictions from the banks are tighter than they were back in the good ole days.
With 30% down I can refer you to an Honest Lender. He is going to make sure you are honest too. You will have to prove everything you say in your loan application, including why you short sold your home. So with that said, you may have to look for a home that cost less.
If you bought a home for $150,000 you would need $45,000 down plus closing cost (You have 20% $30,000)- so instead find one that would cover your cash contribution.
$85,000 you would need $25,500 + closing cost.
I will be happy to assist you.
You have gotten many different answers, some of which could work for you. However may I suggest that with a short sale on your credit, that you contact a Private Lender directly. The problem you have right now is that the short sale will be a red flag for most Conventional Lenders. A Private lender will concentrate on your income and any assets you may have and your ability to repay the loan, along with the Appraised value of the property.
I can recommend a Private Lender that I have used to finance some of my non-conforming clients and have had very good results. They will require a higher down payment and their interest rates will be higher than a Conventional Loan but, although they will lend for up to 12 years, they do not include a pre-payment penalty clause in their agreements. This means that, as soon as that short sale and any other credit problems can be ironed out, you can refinance at more economical terms. In the mean time, you are accumulating equity in the property which should also help you refinance They are licensed Home Mortgage Lenders in the State of Georgia
If you would like to contact them and discuss your situation, here is their contact information:
The Westmoore Group, LLC
Ph: (646) 801-6190
Fx: (646) 619-4291
The Westmoore Group, LLC is a licensed lender in the State of Georgia and operates under the license #30544.
Good Luck in acquiring your new home.
typical Extenuating Circumstances would be Death of a Primary Wage Earner. Serious - Terminal illnesses, Major Medical Bills not covered by Insurance. USDA, VA and Conventional may have a few additional reasons.
Even after all of these, be aware that you cannot have had continuing poor pay history after the home was gone, credit scores that qualify, typically 3 credit/tradelines to show rebuilt credit.
Beyond all the above, the need for an exception makes these types of request a MANUAL UNDERWRITE. A majority of the lending institues Will Not Do Manual Underwrites, Period. They just don't do them. The small few banks that are willing to take these on really want someone they consider STELLAR, as their risk of buying back your loan is so high they most likely wont say yes to any average Joe. If you meet all these and Look like a Rock Star you might just be able to buy under the exception reasons. If not, you'll need to wait the full waiting period, work on your credit, down payment, ect....
I hope this has been helpful.
Senior Mortgage Consultant
Cornerstone Mortgage Group
6151 Powers Ferry Road NW
Suite 610 Atlanta GA 30339
On the other hand, it may just be that you don't meet current industry underwriting guidelines that all lenders underwite to.
FHA is generally the most lenient for borrowers with a previous short sale. In 2010, HUD issued guidance to all lenders regarding borrower eligibility for FHA loans when:
â€¢ A previously owned property was sold for less than what was owed (short sale), or
â€¢ There is a principal write down of indebtedness that cannot be re-financed into a new mortgage (short pay off).
As outlined below, borrowers are not eligible for a new FHA loan if
â€¢ They pursued a short sale on their principal residence simply to take advantage of declining market conditions, and purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.
Borrowers will be eligible for a new FHA loan on a short sale, if:
â€¢ The borrowers were current on the mortgage and other installment debts at the time of the short sale, and
â€¢ The proceeds of the short sale serve as payment in full.
Borrowers who were in default at the time of the previous short sale will not be eligible for a new FHA loan for 3 years (based on the date of the pre-foreclosure sale).
Should the short sale have been due to an extenuating circumstance such as death or serious illness of a primary wage earner or a job relocation, an FHA in less than 36 months might be possible.
With a Conventional (Fannie Mae/Freddie Mac) mortgage, at least 24 months must have passed since date of the short sale. The minimum down payment will be at least 20%. After 4 years have passed, the minimum down payment is 10%.
For a VA mortgage, at least 12 months must have passed since the completion of a short sale.
Regardless of the above, if the mortgage that the short sale was completed on was an FHA, USDA, or VA loan, then waiting period for a new FHA, USDA, or VA mortgage will be at least 36 months. This is due to the fact that you cannot get a government backed loan, when a claim has been paid in the last 36 months on another federally insured loan (including student loans)
Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.
You have ben given some good answers. I am an associate real estate broker but must ask you to change your verbage on your description of a requested "loan officer." Your question made it sound like MOST ALL LOAN OFFICERS WERE NOT HONEST.
Although the Board of Realtor groups and the Georgia Real Estate commission can't fully legislate or assure honesty, most loan officers today are tested and have passed exams like Realtors/Agents.
It is better to ask "Can you recommend a highly experienced loan officer who might handle my unique circumstances. No doubt, experience or should I say "wise experience" is still something that can separate us from the pack as they say! ........ Oh wow, is it OK to be separate from the pack in the USA today! Can we change "politically correct" (not very possible) to "morally correct"?
The "HUD" Queen
Success Atlanta Real Estate & Investments, LLC
Please forgive me if you already know any of this. You may qualify to purchase right away if that recent short sale was due to a relocation for employment, provided your credit history reflects that you were in good standing on all of your debt (including mortgages) for at least the previous 12 months prior to the sale.
The decision often has more to do with the preferred loan program guidelines set by the Government-sponsored Enterprise (Fannie Mae, Freddie Mac, etc.). You write that the 20% down payment is available, suggesting that a conventional mortgage is desired. At one time, the GSEs required that four years pass after the completion of a short sale (or two years if a documented serious illness or death of the primary wage earner led to the short sale) before a borrower could qualify for a conventional mortgage and three years pass for an FHA mortgage. Fortunately, some honest local lenders are active on this board who will be able to provide better answers on the options that may be available to you.
Meanwhile, I am hoping that you are able to achieve your goals in an acceptable time frame.
All my best.
Georgia Real Estate Brokers Associate, Lawrenceville REALTORÂ®, Certified Affordable Housing Counselor, CDPE
Keller Williams Realty Atlanta Partners
The Short sale will show up on your credit profile if it was in the last 6 months. It is an issue to gt around. You asked for honest and that it was I am giving you.:-) I trust one mortgage broker that will not take advantage of you and will give you the straight up. I have closed over 2500 foreclosures a my team has done some short sales. I was the listing agent on all of these sales so I really don't get into the financing as I represent the corporations in those cases- however my business plan will be taking me in your direction for 2013. If you will email me I will get the information to you as soon as tomorrow.
Becky Loar, President
The Becky Loar Group, LLC
@ ERA Allpoints Realty.com/
My direct email is firstname.lastname@example.org
Look forward for your email and hope you have a good new year!
Morgan Campbell, Mortgage Banker