if short sale or foreclosure how soon can buy home. We both have stable good paying jobs

Asked by rvfiol, Mountain House, CA Sat Sep 8, 2012

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Irma Trapoli…, Agent, Salida, CA
Mon Sep 10, 2012
On a Short Sale is approximately 2 years, and Foreclosure it's approximately 7 years. I would personally direct you to a lender who would be able to answer these question for you. I do agree to typically advocate for a Short sale over a Foreclosure. If you have any further questions, please feel free to contact me at 204-2304 or team.trapolino@gmail.com.
Thank you
Irma Trapolino
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Steven Ornel…, Agent, Fremont, CA
Sun Sep 9, 2012

If you are facing a distressed sale of your home I typically advocate a Short Sale over a Foreclosure - especially given the tax exposure if the lender slips into 2013 before foreclosing as the Federal Mortgage Debt Relief Act of 2007 expires 12/31/12. Any deficiency amount will be a taxable event for you (provided the act is not extended into 2013).

You need to make a decision QUICKLY and WITH the help form a CPA ASAP!

Short Sale:
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) you aren't looking to purchasing a similar or larger home in the same area as short sale you can actually buy the very NEXT DAY after escrow closes on your Short Sale.

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.

A 7 year waiting period; however, if there are documentable "extenuating circumstances" (divorce, medical, job loss, death of a wage earner, etc.) then 3 years.

See https://www.efanniemae.com/sf/guides/ssg/sg/pdf/sel082112.pdf page 454 for a summary of option with and without "extenuating circumstances".

Also, you should review this blog post:
"CA Senate Bill 458 Now Prohibits 1st/2nd+ Deficiency Judgments*"

Best Regards, Steve
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Jason Rivers, Agent, Modesto, CA
Sun Sep 9, 2012
In general a Foreclosure is at least 2 years after discharge date. Short sale is 3 years but I have heard as short as 1 year. You may have to use a mortgage broker and not a direct lender. Check out my FREE REPORT "6 Things You Must Know Before You Buy a Home" on my website http://www.riversrealty.com . Thank you. Jason Rivers
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