How soon can I buy a house after a short sale?

Asked by Jimster, Saint Louis County, MO Sun Jan 18, 2009

I have a 779 fico score, my wife's is 771. I have no late payments on anything including my mortgage. The lender after the short sale will have a loss of approximately $18000 after all realtor fees are paid. I paid my mortgage in full and on time for the last 8 years.

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, ,
Mon Jul 18, 2011
I too found myself reading some articles on this topic and found this old thread with current responses. I am writing this response in hopes that someone out there who is looking for a little ray of hope, will stumble upon it so I can share some good news. Although the answers below are surely correct, there are some missing loan options that are hands down the best and most effective way to become a homeowner after a short sale. I have been very successful in helping countless people get into homes after a short sale. Irregardless if you had a string of missed payments (in order for your lender to consider your situation a hardship), or you maintained a perfect payment history, you can buy another home. If not immediately, for sure within 1 year after your short sale. That's Right! 1 year. The only problem is this program isn't for everybody. Although this is a nationwide government program, there are some restrictions. If you would like some additional information or to find out if you qualify for this special government program, please contact me. Unfortunately, I am only licensed in CA, but we do have branches in Idaho, Nevada, Oregon, Texas, Utah, Wisconsin and will soon be licensed in Arizona, Hawaii, Illinois, and Washington. I would be more than happy to refer you to branch in your State. For additional information please visit my website.

Best of Luck!
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1 vote
I am in Nevada and would like more information. Thank You
Flag Tue Jul 26, 2016
I live in Georgia and would love info on getting a new home. I did my short sale last dec 15, to be exact. I did have missed payments but this was due to divorce, and no longer could Liberia house that size. Let me know if I have any options. I'm im a lease until next April
Flag Wed Jun 3, 2015
On 10/08/2009 I became disable and was not able to pay the house payment . On 09/12/2013 the house was sold on a short sale. I my all my car payments and the only bills that are late is some hosp bills because of worker comp. Now I am on SSI . How long before Can buy a house or should I lease a house for a year then buy the house using the rent as down payment and do repairs on the house it for now .
Flag Sat Oct 19, 2013
Bill Gassett, Agent, Hopkinton, MA
Mon Mar 21, 2011
Here is a complete guide to how soon you will be able to get a mortgage after either a short sale or foreclosure along with an explanation of the impact on credit.
1 vote
Iam01pbm, Home Owner, Sacramento County, CA
Fri Feb 4, 2011
I was in the same situation. I bought a house right after my short sale in CA. here are some links, Rember, "Dont believe the naysayers" they will only depress you!! even Realtors, if they only sell houses and dont keep up on laws they will just tell you that it cant be done or you have to way several years......not true. Charles Dailey in MN knows what he's talking about and im sure will be more than happy to answer your questions. GO BUY A NEW HOME!!!……
1 vote
, ,
Sun Jun 20, 2010

While browsing for other articles, I found your old thread.

Dean's answer is right on. Here is a link to the mortgagee letter:…

You may also want to dive a little deeper regareding the details of your short sale to see if your old lender can come after you for the deficiency.

Here are more details on the changes FHA made, details on what to expect and you need to do to buy following a short sale.…
1 vote
, ,
Mon Mar 15, 2010
ML 09-52 From HUD, you can buy 1 day after short sale!!!!!!!!!!!!!!! See link:

Other wise:
3 years on a new FHA loan - 3.5% down 620 score
2 years on VA loan - 0% down
2 years on Fannie Mae - 20% down

3 years on FHA
2 years on VA
5 years on Fannie mae

2 years FHA and VA
4 Years on Conv
1 vote
Bob Waters, Agent, Chesterfield, MO
Sun Jan 18, 2009
On the surface, by your decsription, you may not be harmed too signifiacantly by your short sale situation. There are a lot of questions that would be asked to determine the feasability of your qualifying for a loan, but you may find that you would only be penalized with a slighly higher interest rate than you otherwise would have qualified for. Make sure that you continue to make all other debt payments in a timely way which would then continue to support your FICO score. Call Pulaski Bank or a local broker and ask them. Good Luck!!
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1 vote
, ,
Fri Jan 24, 2014
Hello... That depends on which state you are looking to buy. We have an exclusive portfolio program (meaning it's not gov't backed and only available through our bank) that allows you to buy again one day after Short-Sale or Foreclosure. It's available in AZ, CA, CO, DC, FL, HI, IL, MD, MT, NV, NJ, NY, NC, OR, SC, VA, and WA. The requirements are a 20% downpayment and a 660 mid FICO score.

You can find out more info from the link below -
0 votes
Joycelewis412, Home Buyer, Sacramento, CA
Tue Aug 13, 2013
You may qualify to purchase a home just 1 day after a short sale.

Check if you qualify for mortgage. Try http
0 votes
Kimberly Hagy, , Utah
Wed Jun 19, 2013
I'm THRILLED to let you know that I have a program that can help buyers in California get into a home 1 DAY after a short sale or foreclosure.

It's a portfolio loan that we underwrite and fund.

Buyers needs to have a minimum of 25% down, Minimum credit score of 600, Owner Occupied. Other qualifications do apply

I’ve found this program to be a great help to many people.

I’d love to be a resource to you!

Please give me a call at 801.790.0895.

Thank you,

Kimberly Hagy
Mortgage Professional
0 votes
Jerimiah Tay…, Agent, Tucson, AZ
Sat Sep 24, 2011
There are a few pieces of the puzzle you haven't included here.
1. who is the lender.
2. why are you selling short? Job relo etc.?
3. Has the lender given unconditional release?

See my blog for more info or to contact me with further questions about buying a home after a short sale.…
0 votes
Stephanie Le…, Agent, Miami Lakes, FL
Fri Sep 23, 2011
In short, here is the breakdown...

Cash- No time period
FHA- 3 years from the short sale closed date
Conv- 2 years from the short sale closed date

I can personally tell you I have a seller that did a short sale in 2008 and just this year he has bought a new home... When he did his short sale his score was over 800 and after the short sale he had only 6 months of missed payments while we did the short sale. When all was said and done his credit score only dropped to 710...
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I was told that it went by the recording date, not the closing date. So far everyone I asked as told me recording. Does anyone know for sure?
Flag Sat Aug 16, 2014
My husband and I were 12 months literally to the date behind on our mortgage from the date we placed our home on the market and went to settlement. Prior to the MORTGAGE COMPANY suggesting the short sale due to the unexpectant arrival of our TWINS we were ALWAYS a month or two ahead!! My husband as well as myself only took a loss of about 60 points a piece on our credit score; however that was 2/2011 and since then WE BOTH are well over 650 it's been 18 months so it's REFRESHING to see that your client purchased within 3yrs!!! 18 months to go and the time FLIES.......I'M ENCOURAGED!!! THANK YOU^_^
Flag Tue Aug 7, 2012
Sandra marti…, Home Buyer, Fresno County, CA
Fri Sep 23, 2011
my home is being reported as BK 7 and discharged in 03-09 however it was a short sale. If I don't dispute and leave as is....should I leave as is or dispute? what are the advatages and disadvantages?
0 votes
Leticia Soto…, Agent, Chino, CA
Tue Nov 30, 2010
It can take up to 2 years to be able to get a loan again. However it depends on what your fico score will be after the short sale is completed.
0 votes
Jennifer Ric…, Agent, Valencia, CA
Sun Sep 12, 2010
My husband just posted a blog on this topic follow this link it is information directly from HUD this will clarify your question.
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Dana Tippit, Agent, Chesterfield, MO
Sun Jan 18, 2009
If I understand you correctly: You haven't missed payments, you are current on all your bills, and you have good credit. This may not qualify for a short sale---the Bank does not have to accept short payment...there are guidelines each lender follows...many include hardship like loss of job, death of spouse, serious illness, each causing financial hardship. You have to show unemployment records, unpaid credit card bills, unpaid utility bills, etc. You have to show you have no other source of ability to pay now or in the near future. Don't count on a short sale because you are upside down on your mortgage when you sell...

That said, you do have many other options: Talk to your lender ASAP. Ask for a loan modification or some other type of settlement...With your good credit and payment history the Bank my offer an unsecured line of credit for the $18K, or another loan and pay it off. The Bank may keep your same interest rate,,,may stretch it out over 15 or 30 years...

Best of luck.

Check out my website under FORECLOSURE PREVENTION for more information...or contact me directly for additional help.

0 votes
Vicki Masell…, Agent, Duluth, GA
Sun Jan 18, 2009

Best case scenario, you are probably looking at 18-24 months before you can qualify for an FHA-insured loan. Your particular case may vary depending upon how your purchase and sale agreement was structured and how the provisions to address the deficiency amount with your loan servicer were written. It also depends on how your loan servicer reports the deficiency to the 3 major credit services. You will want to pull yours to check & see. In some cases, it may be inadvertently reported as a foreclosure, in which case, you will want to have such corrected.

One final comment. The rules in real estate, banking and mortgage lending continue to be in a state of flux. The rules yesterday are different from today which will likely change again tomorrow. If your plan is to buy another home, I suggest that you choose a trust loan officer to counsel and guide you on the path of credit repair and the steps you'll need to take to qualify for financing once again down the road. Also consult with a full-time professional Realtor who knows the area of interest to you so that they can provide guidance on market values when it comes time to make an offer on your next home. Best wishes - Ted
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Dale Weir, Agent, Chesterfield, MO
Sun Jan 18, 2009
typically the short sale will affect your credit scores and they will not remain at 779 and 771. I can't tell you how far down they will go, but you can expect that they will go down. You need to talk to a mortgage lender now and be honest with them (they will find out when they run your history) and ask what you can do, how long it will take and what steps you should and shouldn't take until you can buy a home again.

I would start with Andy Perotti at Bankers Home Lending - He's a banker broker and he's got an underwriter in his office so he can tell you if any of the banks would be able to help you and how soon they would be able to help you. He may be able to find someone who can help you now, but if he can't he will give you good honest information that will help you.

His number is 636-949-7979 or 314-922-4653. Email is He's located at 2247 Bluestone Dr in St Charles 63303 - it's right off 94 between 70 and the page ave ext.
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