I "short sale" my home in August 2012, when can I buy again? I have a savings of 15-20K. My FICO is 660 2months ago. Please advise. Thank you.

Asked by rose_3rq, Tujunga, CA Tue Jul 23, 2013

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10
The Stephen…, Agent, Portland, OR
Thu Nov 7, 2013
Things are changing fast and many are saying 1 year is the max wait time now, but it does depend on your total financial package.
0 votes
Dave Culwell, Agent, Pasadena, CA
Thu Nov 7, 2013
You may be able to purchase sooner than you think. There are a lot of variables and are very specific to the individual. If you'd like more info and dig a little further, give me a call/email and we'll figure it out.
626.676.1536 | culwellgroup@gmail.com
0 votes
Thierry Abel, Mortgage Broker Or Lender, Corte Madera, CA
Tue Oct 1, 2013
FHA loan for Borrowers one year out from a major derogatory such as Foreclosure, Short Sale, and Bankruptcy which was caused by loss of income due to the economic recession are now available as long as applicant can meet the following criteria;

Applicant had credit issues caused by the recession that were the result of either:
Documented 6 months of unemployment, or
Documented 20% reduction of income for 6 consecutive months, or
A combination of unemployment or 20% reduction of monthly income lasting at least 6 months.

Applicant had good credit prior to loss of income
Applicant must have had 12 months of satisfactory credit since from the end of the derogatory event with no mortgage or installment lates and no severe derogatory revolving lates.

Applicant must receive one on one Pre-Purchase counseling from a HUD approved Counseling agency 30 days before application. (feel free to contact me for a list of HUD Approved Counseling Agencies. near you)


Cheers,

Thierry

Thierry Abel
Senior Loan Consultant
All California Mortgage
A Division of APMC
P: (415) 464-8261
C: (415) 378-7508
F: (415) 464-2367
E: tabel@allcalifornia.com
NMLS 304353 - BRE 01380701
0 votes
Heidi Babcock, Agent, Pasadena, CA
Tue Oct 1, 2013
The news is good for post-short-sale. You can qualify much more quickly for a loan now. How is the sale of your home going? Contact me for personal lender referrals and Good Luck!
0 votes
Roy Bush, Both Buyer And Seller, Phoenix, AZ
Sat Jul 27, 2013
CFS Mortgage, http://www.cfsflex.com, has a flexible loan program. They allow a mortgage after a foreclosure, short sale, or chapter 7 bankruptcy. There is only a six month waiting period. This is perfect for individuals looking to become homeowners again.
0 votes
Curly Sue, , Texas
Fri Jul 26, 2013
August 2015 for FHA. 2014 if you have 20% down for conventional.
0 votes
, ,
Fri Jul 26, 2013
If you can make a case that the short sale was beyond your control and that there were no late mortgage payments you can buy now as long as the situation that cause the problem has been resolved. . . This applies to almost no one, I have seen one loan fund like this...once (about 2 years ago).

Otherwise you are going to be waiting until August 2015. That is to get a loan with a reasonable interest rate.

So there are several incorrect answers here. The 4 year term is the conventional after a bankruptcy chapter 7 not a short sale, a short sale is treated exactly like a foreclosure.

However, you can buy conventional after 2 year with 20% down otherwise it is 7 years.
0 votes
Gregorio Den…, , San Diego, CA
Tue Jul 23, 2013
Cyhthia says:

"You have to wait 4 years from the date of the short sale before you can a home on a conventional loan.
You can purchase before 4 years, but it will have to be a FHA loan, 3.5% down payment. "
-----------------
That is incorrect. The wait period is 2 years for conventional, conforming financing with 20% down or 4 years with 10% down.

The wait period for FHA is 3 years unless you meet the criteria for having not missed a payment.

Agents, PLEASE stop answering mortgage questions incorrectly! If you don't know the answer, don't answer. Giving incorrect information to consumers is not very professional and operating outside your scope may be grounds for license suspension.
0 votes
Cynthia Till…, Agent, Altadena, CA
Tue Jul 23, 2013
You have to wait 4 years from the date of the short sale before you can a home on a conventional loan.
You can purchase before 4 years, but it will have to be a FHA loan, 3.5% down payment.
You should work on getting your credit score up to at least 700.
You have money saved so that is good.

Please let me know if I can answer any other real estate related questions.

Sincerely,
Cynthia
0 votes
Thierry Abel, Mortgage Broker Or Lender, Corte Madera, CA
Tue Jul 23, 2013
For an FHA loan - 2 years from completion

And between 1-2 years from discharge if reasons for the short sale were beyond your control: (Unemployment, prolonged strikes, medical bills not covered by insurance. Divorce is not considered beyond the borrowers’ control.)

You are considered eligible for a new FHA-insured mortgage if:

You were current on your mortgage and other installment debts for the month due for the 12 month period preceding the short sale of previously owned property, and

The proceeds from the short sale serve as payment in full.

You are not eligible for a new FHA mortgage if you pursued a short sale agreement on your principle residence simply to

Take advantage of the declining market conditions, and
Purchase, at a reduced price, a similar or superior property within a reasonable commuting distance

Thierry Abel
Senior Loan Consultant
All California Mortgage
A Division of APMC
P: (415) 464-8261
C: (415) 378-7508
F: (415) 464-2367
E: tabel@allcalifornia.com
NMLS 304353 - DRE 01380701
0 votes
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