You are not alone with your question. Real estate professionals are asked something similar every day. The truth is, it really depends on your individual situation combined with the willingness of one bank versus another to finance your new loan. You may receive a dozen denials before finding a loan officer who will even sit down to discuss it with you. I obviously cannot make magic happen, but there is a section on my website titled, "What the heck is a Short Sale?". My suggestion would be to take a moment to read it and I would be happy to answer any questions you may have. I have quite a few contacts with loan officers who service Suffolk buyers. The web address is listed in my signature line below.
I look forward to hearing from you!
Wainwright Real Estate
Specializing in Suffolk, Franklin, Smithfield, Chesapeake, and Isle of Wight County
Licensed Real Estate Agent in Virginia
"Let's Make Moves Together!"
Here are the guidelines lenders work with regarding short sales:
A borrower is not eligible for a new FHA-insured mortgage if he/she pursued
a short sale agreement on his/her principal residence simply to
â€¢ take advantage of declining market conditions, and
â€¢ purchase a similar or superior property within a reasonable commuting
distance at a reduced price as compared to current market value.
Borrower Current at the time of Short Sale
A borrower is considered eligible for a new FHA-insured mortgage if, from
the date of loan application for the new mortgage, all
â€¢ mortgage payments on the prior mortgage were made within the month due
for the 12-month period preceding the short sale, and
â€¢ installment debt payments for the same time period were also made within
the month due.
Borrower in Default at the time of Short Sale
A borrower in default on his/her mortgage at the time of the short sale (or preforeclosure sale) is not eligible for a new FHA-insured mortgage for three
years from the date of the pre-foreclosure sale.
Note: A borrower who sold his/her property under FHAâ€™s pre-foreclosure
sale program is not eligible for a new FHA-insured mortgage from the date
that FHA paid the claim associated with the pre-foreclosure sale.
Exception: A lender may make an exception to this rule for a borrower in
default on his/her mortgage at the time of the short sale if the
â€¢ default was due to circumstances beyond the borrowerâ€™s control, such as
death of primary wage earner or long-term uninsured illness, and
â€¢ a review of the credit report indicates satisfactory credit prior to the
circumstances beyond the borrowerâ€™s control that caused the default.
For more information, please feel free to call email me directly at firstname.lastname@example.org.
Jen Tramontana, REALTOR
Keller Williams Elite Western Branch