I had a short sale in 2011, no longer on my credit report. trying to buy a house, will i be able to get financing?

Asked by isabel, San Diego, CA Mon May 19, 2014

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Valli Lopez, Agent, San Diego, CA
Thu Sep 18, 2014
If you buy FHA or VA, yes now is fine.

If you want to avoid MI and use a conventional loan, I would need 20% down and can finance it on a portfolio loan with just slightly higher interest than the average.

Most importantly, don't give up, keep doing your research, keep calling and getting advice and go with your instincts. Where there's a will, there's a way.

Valli Lopez
NMLS 980530
0 votes
Josh Barnett, Agent, Chandler, OK
Thu Sep 18, 2014
This is a great question for your Loan Officer, they will be able to answer this for you, give them a call.
0 votes
Scott Godzyk, Agent, Manchester, NH
Thu Sep 18, 2014
You should meet with a local and trusted loan officer who can pre qualify you at no cost and let you know. Without looking at your credit and financial data, anyone else is just guessing
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Joanne, Home Buyer, South San Francisco, CA
Thu Sep 18, 2014
yes and no. if it is completely off your credit report then yes you are most likely able to get financing. However, if it is still reflecting on your credit report as "amount settled for less" or sometimes it would say " account transferred" or at times it would even say foreclosure (the mortgage belonging to the property should still be on there since it has only been 3 years). in this situation your agent should have their loan processor or underwriter run the loan originating system to see if it gets an automated approval (its an instant approval that they are able to run) if it gives an approved eligible then more likely you will be ok. most lenders will accept these findings and proceed with the financing. There are however a couple of lenders that may have an overlay which can overide this and the waiting period is about of 2 to 4 years after a short sale.

There is a lender out there that will finance 1 day after short sale but the rates and cost are so high. much higher than conventional and lower than hard money. they also require 35% down.

hope this helps
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, ,
Thu May 29, 2014
Yes if everything else is good, I can help you with that. There are some variables as to which loans you can have.

Feel free to contact me by clicking on my picture if you would like a no obligation consultation.
0 votes
Randall Ortiz, Agent, Sacramento, CA
Tue May 20, 2014
You should be fine, depends on what else is on your credit. I've worked with clients that had short sales, but as long as the short sale was 2 years old they were good to go. Let me know if you need a lender referral.
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Gregorio Den…, , San Diego, CA
Mon May 19, 2014
Be careful about some of the "advice" you are receiving here.

If it no longer shows up on you report, it doesn't mean it didn't happen. You have to disclose it on a URLA (Uniform Residential Loan Application) by law and if you don't, it's loan fraud. That being said, there are loans available to you given the dates you stated so I suggest you speak with a knowledgeable loan officer.

Please note that someone commented in a reply to a reply with this: "simply show your settlement paperwork to a prospective underwriter that it happenned in 2009."

Well, that's also not so "simply" done. I'm not sure where they got 2009 from, but underwriters don't just take take settlement paperwork and ignore what it says in the credit report. The process would involve taking the paperwork and updating the credit report to reflect the accurate information before it would be able to close.

Make sure your loan officer understands this.
0 votes
Ruth and Per…, Agent, Los Gatos, CA
Mon May 19, 2014
Hi Isabel

It will all come down when was it posted on your Credit Report.

Generally, 2 years are enough after a Short Sale, provided you are current on all
other Accounts and Payments.

So check your Credit Statement and see when it was posted and closed.

That is the "date".

Good luck
Web Reference:  http://www.ruthandperry.com
0 votes
There are 3 credit "Statements". Check all 3. It doesn't matter when it was posted on your credit report, it matters when it happenned. if you did a short sale in 2009 and it settled and closed and recorded in 2009, but somehow didn't get reported to the bureaus until 2012 and showed as of 2012, simply show your settlement paperwork to a prospective underwriter that it happenned in 2009. That is the "date".
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