Home Buying in South East>Question Details

Olive, Home Buyer in Tracy, CA

i have a friend who lost his primary home in jan 09 due to marital issues, fortunatly, he still has 2 other

Asked by Olive, Tracy, CA Sat Jul 4, 2009

rental properties in good standing and paid off other outstanding creditors. what if any kind of a chance would he having of purchasing another home on his own? I just recently ordered his credit report to assist with any other issues if any, as well as his score. He's been employed for 25 years and looks positive for this company due to increase in business. It's unfortunate, along with others, it came to this issue in Jan. I hear of incentives for people to purchase a home or to help before they loose their home but it came a little too late for him, is their anything that helps indivuduals like him? or is it back to wait the 2-years to regain your credit to try and do anything. thank you for your help.

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Hi Olive,

Through credit repair your friend might be able to get a loan in 6 months. Typically a borrower would have to wait 24 months to get a loan from an institutional bank. However, there is seller financing or Self Directed IRA private mortgages. The most efficient way is to begin with credit repair and see if the foreclosure will come off the credit report. Then there will be no problem at all. Take care!
0 votes Thank Flag Link Sat Jul 4, 2009
Hello Olive and thanks for your email.

Even with the current programs intended to help buyers in distress, most homeowners are still finding help slim and fleeting.

Depending on the circumstances surrounding his first and primary home, he may have to wait longer than the two years to purchase another home. Lenders' standards have increased dramatically, and now even buyers who were late ONE time in the past 12 months are finding it difficult to refinance. If the home was sold in a short sale, the owner may qualify to purchase another home in about 2-3 years. However, if the home was sold in foreclosure, then your friend may have to wait at least 5 years before qualifying for another home under current FNMA, FHLMC and FHA guidelines. He may certainly purchase a home using private money, but considering that there are two (2) homes he currently owns and for which he can occupy, he should count himself lucky and work on his credit over the next 60 months to afford a home in the near future.

In the meantime, have your friend contact a qualified mortgage broker in your area who can review his credit history, financial circumstances, cash reserves, and can help him move toward his next home purchase just as soon as he is qualified. Good luck!!

Grace Morioka, SRES, e-Pro
Area Pro Realty
0 votes Thank Flag Link Sat Jul 4, 2009
hi.....there is no easy answer....three years from the date of the sheriff's sale and re-established credit are fha's requirements, which would be probably the only way to go......private $ is huge down and unfriendly rates and terms.....he either has or hasn't had a fc......if he has.then the above should be your guide.if there is a friend or relative....they could come forward and help.....their involvement would be temporary until he could refi them off...best of luck to your friend.........bob mcclure- success mortgage partners- plymouth, michigan......
0 votes Thank Flag Link Sat Jul 4, 2009
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