Foreclosure in Rohnert Park>Question Details

alffysan, Home Buyer in Rohnert Park, CA

I have a short sale not to long ago , and I will like to know how long I have to wait to be able of buying a home

Asked by alffysan, Rohnert Park, CA Mon Sep 16, 2013

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The other answers do apply but if you are looking to buy a home sooner than later and you have a decent down payment to work with or other existing equity, you could get a Hard Money loan right away. My husband and Broker of Sun Pacific Mortgage & Real Estate offers Hard Money with just 2 criteria: #1. At least 25% down on a purchase or existing equity and #2. Ability to repay.

In the 25+ years we've been in business we've helped many, many people buy a home despite recent short sale, foreclosure, bankruptcy, property condition, etc.

Just thought I'd let you know about this type of loan program too.

Best, Lynn
Owner/Realtor - Flipper Chick
http://www.Sunpacmortgage.com
1 vote Thank Flag Link Tue Sep 17, 2013
My experience in dealing with borrowers that have had a previous short sale has me convinced the answer to this question is a lot more complicated than anyone has indicated so far. The type of loan that took the hit, the type of loan you try to use next time, even the timeliness of turning in your homework in the 4th grade can impact the answer. Just kidding on that last one.

The timeline is not the only factor, even if you are past the timeline if the lender can’t get a CAIVRS number they can’t get the next loan insured by FHA. If FHA is the one that took the last hit they may be a little slow next time. None of this takes place in a vacuum.

Whatever you decide is the most probable timeline, if you double that in your plan it will keep you safe, good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
1 vote Thank Flag Link Tue Sep 17, 2013
Hello Alffysan,

Generally speaking, following a short sale you will need to wait 2 years for a conventional loan (not government insured such as FHA) with a minimum 20% down payment.

For an FHA loan, you typically need to wait 3 years...and for these you can currently purchase with as little as a 3.5% down payment.

Depending on your specific situation and the details of your short sale, there may be additional options. I'd suggest that you discuss your specifics with a qualified loan consultant.

If I can help in any way, please do not hestitate to contact me.

Take care,
Bill
1 vote Thank Flag Link Tue Sep 17, 2013
Hi alffysan,

FHA financing normally requires THREE years from the short sale; HOWEVER, IF:

1) The mortgage payments were made on time within the 12 months prior to the short sale, and

2) The Buyer is not looking to purchasing a similar or larger home in the same area as short sale; one can actually buy the very NEXT DAY after escrow closes on your Short Sale.

See: http://docs.Steven-Anthony.com/ML09-52ShortSales+ShortPayoffs.pdf
Be sure to have your Mortgage Broker/Banker confirm current guidelines when you want to move forward.

In addition, on 8/15/13 HUD/FHA released Mortgagee Letter 2013-26 which introduces the definition of an "Economic Event" which may allow purchasing within 12 months of a distressed property transfer.

See: http://docs.Steven-Anthony.com/ML-2013-26.pdf


Conforming loan guidelines state a minimum of TWO years and 20% down; however, if the short sale was due to documentable "extenuating circumstances" (divorce, medical, job loss, death of a wage earner, etc.) then you only need 10% down.

Extenuating Circumstances "are nonrecurring events beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations."

In order to understand your options for purchasing make sure to obtain a "True Pre-Approval" which you can read about here: http://www.Steven-Anthony.com/GettingStarted

You might also be interested in "Retail Banks vs. Mortgage Broker/Bankers"
http://tinyurl.com/6qln6nd

If you would like a referral to a Mortgage Broker/Banker please contact me offline.

-Steve
1 vote Thank Flag Link Tue Sep 17, 2013
Probably not as long as you think. Normally 2 years, possibly even less depending on the circumstances of your short sale. For instance, if you did not miss any payments before your sold, that is a plus for you and you may not have to wait at all. The one caveat is FHA or VA loans. If you had to short sale an FHA loan, you may not be able to get another government backed loan for 5-7 years.

Talk to a reputable local lender as soon as you can. They can give you the information that applies to your particular case. No answer here is going to be one size fits all, but there is hope and it is getting better all the time.
1 vote Thank Flag Link Mon Sep 16, 2013
That is a great question for a mortgage professional, but typically, depending on the rest of your credit history, it is three years.
If you would like a referral for a lender please give me a call.

Best of luck,

Mike Bryant
707-484-8825
1 vote Thank Flag Link Mon Sep 16, 2013
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