Foreclosure in Davie>Question Details

Pearl, Home Seller in Florida

When can I buy a home again after a short sale since my home was in the foreclosure process?

Asked by Pearl, Florida Thu Jan 29, 2009

You see my home was in default regarding a foreclosure. The bank allow me 90 days for the short sale to go trough. Today the bank accept the offer. Now do I go rent with option to buy later. Or would I get approve now for a new loan. Or do I just rent and improve my credit and buy later. Advice needed.
thank you

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BEST ANSWER
Hi Pearl,

FHA guidelines indicate that you will be able to purchase again within two years after having gone through a short sale. As you know, two years can fly. Just make sure you keep your credit good going forward and manage your debt. Best to you.

Lynn Pineda
0 votes Thank Flag Link Fri Jan 30, 2009
Dear Pearl,

Sorry to hear you had to short sale your home. This is not an easy situation for you. Fannie Mae has established guidelines which I have blogged about on Trulia for someone just like you. You are able to purchase again in two years as long as you are up to date on all of your payments and your credit score is high enough.

For now, just concentrate on renting and building up your equity and credit score.

Susan Penn, EWM Realtor
954-557-5993
penn.s@ewm.com
2000 Main Street
Weston, Florida 33326
0 votes Thank Flag Link Sun Apr 11, 2010
Rent and improve your financial condition not just your credit. Why are you going from the frying pan into the fire? If you tried to get pre-approved now for a new loan they will run your credit and see the delinquency on your home and unless you have a great deal of monies put away (the bank doing the short sale will already have asked to see your accounts) or you have an individual willing to put the house in their name, with the stringent underwriting changes you will not get a loan. There is no shame in renting while you reconstruct your financial situation don't allow yourself to go from a bad to worse. Good Luck.
Web Reference: http://www.asphomes.com
0 votes Thank Flag Link Mon Apr 5, 2010
The answer Lynn provided was correct. New Fannie Mae gudelines allows for a homeowner who sells their home through a Short Sale to purchase another home in 2 years. I would advise you to rent a home for now and take the next two years to take the necessary steps to improve your credit rating and if possible, plan to save for at least a 3.5% down payment. When you are ready to purchase your next home, make sure that you work with a lender who will look out for your best interests and within your budget so that your next experience is a better one. Best of luck to you.
0 votes Thank Flag Link Tue Feb 3, 2009
Two options....wait a couple of years for regular financing....or consider a hard money loan. You'll be paying a higher interest rate with a hard money loan.
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Thu Jan 29, 2009
Cindi Hagley, Real Estate Pro in San Ramon, CA
MVP'08
Contact
If your home sold as a short sale you DID NOT MAKE any payments over a certain amount of time most likely has tanked credit scores. Lending is based on buyers credit scores, employment history, debt ratio, downpayment of approx. 3.5% or more.

Contact a mortgage review your financial records
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Thu Jan 29, 2009
It usually takes 1-2 years to repair yout credit from a short sale. Rent with option to buy is a good idea. Talk to your bank about and a qualified financial officer for more specific information on ow to repair your credit.

Tim

tfitzgerald@c21proteam.com
815-353-1901
0 votes Thank Flag Link Thu Jan 29, 2009
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