I heard that the length of time for a buyer to purchase after a short sale changed. It's now a 1 year wait. Is that true?

Asked by Danny Chavez Sr, Rancho Cucamonga, CA Tue Aug 27, 2013

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Brian Nguyen, Mortgage Broker Or Lender, Mission Viejo, CA
Mon Feb 24, 2014
Yes, that is correct, but only for an FHA mortgage which is a great loan. The waiting period in order to get an FHA mortgage is now only 1 year, but there requires certain circumstances for that to be allow. I have pasted an article below from the Chicago Tribune about this change that you are talking about so check it out! I am a lender in Southern California and I have given loans to individuals who have also had recent short sales. If the short sale was due to job relocation, or there are other compensating factors and strengths to the file, I can get you the loan you need.

Well I hope this helps! If you have any further questions or if you need a loan, feel free to contact me. Also, if you found this helpful please leave me a recommendation if you can!

Good Luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
0 votes
Alex Montelo…, Agent, Seal Beach, CA
Thu Aug 29, 2013
As of August 15, 2013 FHA has changed their guidelines from 3 years to 1. The applicant must show a 20% loss in wages from the years prior to the short sale and an improvement after the short sale showing 12 months of stability. Thats the short of it. Not everyone will fit this mold but it is a great sign that FHA is trying to help those that wish to become homeowners again.
0 votes
John Johnson…, Agent, Ontario, CA
Wed Aug 28, 2013
IT IS ABSOLUTELY TRUE!!
FHA is reducing the amount of time a borrower must wait in order to receive an FHA-insured mortgage. It was at three years, now the FHA allows eligible borrowers to receive an FHA-insured loan in as little as one year. Eligible borrowers include those who experienced unemployment or other severe reduction in income and were unable to make their monthly payments, and ultimately lost their homes to a pre-foreclosure sale, deed-in-lieu, or foreclosure (including a short sale).
FHA is allowing for the consideration of borrowers/buyers who have experienced an economic event and can document that:
• Certain credit impairments were the result of a loss of employment or a significant loss of Household Income beyond the borrower’s control;
• The borrower has demonstrated full recovery from the event; and,
• The borrower has completed housing counseling.
• Can document that the delinquencies and/or indications of derogatory credit are the result of an economic event as defined in the mortgagee letter,
• Has completed satisfactory housing counseling, and
• Meets all other HUD requirements.

If you have questions please do not hesitate to call me!
Good Luck!

John L Johnson II
CA DRE Broker Lic# 01312900
REALTOR®
J-N-J Real Estate Services, Inc.
8560 Vineyard Ave. #404
Rancho Cucamonga, CA 91730
(909) 224-2091
Sales – Leasing – Property Management
http://www.jnjres.com
0 votes
Robert Chome…, , San Diego, CA
Tue Aug 27, 2013
For a VA home loan it is 1 year. I think conventional is still 2 year and FHA 3. But I have a portfolio loan with 20% down that has NO waiting period. You can get the loan literally the day after your short sale.
0 votes
Jerry Gusman, Agent, Rancho Cucamonga, CA
Tue Aug 27, 2013
This is true,however this is just the mandatory waiting period FHA has. You still must qualify witha good credit score and that is as always depends on keeping current on other credit payments. I only say this due to most short sellers are also late on payments.

But Yes FHA has changed the waiting period to 12 months recently.

If you are looking for a home I have inventory for sale!
0 votes
Alexander Gr…, Agent, San Jose, CA
Tue Aug 27, 2013
I can certainly help you out there. You can call me at 408-352-5147 or email me at AGreer@themortgageoutlet.com. You can check us out at http://www.TheMortgageOutlet.com. I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
0 votes
Lee, Agent, Rancho Cucamonga, CA
Tue Aug 27, 2013
It all depends on your circumstance. I always suggest simply to apply for a home mortgage and let an underwriter decide based on your situation. You never know. There are so many variables which you may or may not qualify. Good luck.
0 votes
Cindy Davis, Agent, San Diego, CA
Tue Aug 27, 2013
There's never an absolute answer on this mattr...it's different for each and every deal. I would suggest allowing 3-6 months for the proces...that would be a good time fram to count on..

Best of luck,
0 votes
Linda Proctor, , Gilbert, AZ
Tue Aug 27, 2013
Once again, it depends on your area. The latest info is that the short sale process is much quicker than that but there are many variables. Contact your bank or mortgage lender.
0 votes
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