Rent vs Buy in Goodyear>Question Details

Dan, Both Buyer and Seller in Goodyear, AZ

Have late payment while short selling my house. How long is the wait to buy again?

Asked by Dan, Goodyear, AZ Sat Jan 7, 2012

Had to moved do to my job leaving the state. What can I do to buy again?

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Answers

2
Here you go straight from the underwriting guidelines published on the Fannie Mae web site;

Ramifications of Foreclosure, Short Sale or Deed-in-lieu-of Foreclosure

Here are some of the ramifications of foreclosure, short sale or deed-in-lieu-of-foreclosure, there are many more like; insurance rates, your job (yes employers are checking credit records these days).

Your credit score will be reduced by 200-400 points, short sale and deed-in-lieu-of a little less 100-200 points.

All forms of foreclosure stay on your credit report for 10 years.

After you have gone through foreclosure, short sale or deed-in-lieu-of-foreclosure there will be what is known as the "waiting period", this period of time varies for each and can be reduced if you had some type of extenuating circumstances that caused the foreclosure:
Waiting Periods to Buy After Foreclosure – “YES” Short Sale and Deed-in-lieu-of are forms of foreclosure
• Buying after a Walk Away Foreclosure
The waiting period is 7 years
• Buying after a Foreclosure
The waiting period is 5 years with 20% deposit up to 7 years.
• Buying after a Foreclosure with Extenuating Circumstances
The waiting period is 3 years with 10% deposit up to 7 years.
• Buying after a Deed-in-Lieu-of Foreclosure
The waiting period is 2 years with 20% deposit, 4 years with 10% deposit up to 7 years.
• Buying after a Deed-in-Lieu-of Foreclosure with Extenuating Circumstances
The waiting period is 2 years with 10% deposit.
• Buying after a Short Sale
The waiting period is 2 years with 20% deposit, 4 years with 10% deposit up to 7 years.
• Buying after a Short Sale with Extenuating Circumstances
The waiting period is 2 years with 10% deposit.

In addition to the waiting period and minimum down payment, you will be required to have a minimum FICO score and the home purchase must also be the principal place of residence, not a rental nor a vacation home.

Lastly, most loan applications will ask the dreaded question "Have you ever been foreclosed on?" this stays with you for life, many think that because it will not show up on the credit report after 10 years they can answer "no", well lying on a loan application is a felony that carries a major jail term, so be aware.

Want to get your life back in order and into a home? Want to live in your future home while we get you approved? We have a program that does just that “gets you approved”. “Start Now”, we can have you in a home in as little as 6 months. Visit http://www.MortgageTrainingProgram.com for more information.

Good Luck
Bob Patrick
Buy a home after foreclosure, short sale, deed-in-lieu-of or bankruptcy expert
Movin-On LLC
Helping families/people that have or will loss their home get back into another in as little as 6 months
1 vote Thank Flag Link Sat Jan 7, 2012
The answer is a little more complex than just Fannie Guidelines.
First, a short sale or foreclosure affects everyone diffently, depending on how strong their credit was initially. I have seen a short sale only drop a credit score 30 points, and other times 200 points. It depends on the stability and credit worthiness before the short sale.
Although Fannie Mae does give guidelines, they are just that, and we recently just closed a loan for a couple 15 months from a short sale on a new home. Their credit was a 620 which is probably the minimum you need to shoot for to be a home owner again.
Down payments will be a little higher than what we all have been used to.
0 votes Thank Flag Link Mon Jan 9, 2012
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