If I sell my house in Brentwood as a short sale, can I buy another one? How long do I have to wait for my credit to be better?

Asked by Roberto Mejia, Brentwood, NY Wed Feb 27, 2013

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7
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Wed Feb 27, 2013
BEST ANSWER
Roberto, this depends on your particular situation. If you stopped making payments while you short sold your house, you wouldn't be eligible for an FHA mortgage for 3 full years from the date of the the short sale. For a conventional loan you'd be limited to an 80% LTV, 2 years after the short sale date, 90% LTV 4 years after the short sale date. After 7 years, you're free from restrictions.

If you paid your mortgage within the month of each payment due date, throughout the last 12 months from the short sale date, you may be eligible for an FHA loan if you were also on time with any other installment loans you owe. I am NOT aware of any sort of program that'll allow you to finance within 1 1/2 - 2 years from the short sale date.

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
3 votes
Continental Home Loans did one of my deals.
Flag Wed Feb 27, 2013
Fajardo Dela…, Agent, Flushing, NY
Wed Feb 27, 2013
The home will close and about 18 months later, your credit score and we should be ok.

Fajardo Delacruz
Licensed Real Estate Agent
Century Homes Realty Group llc
Direct Line: 347-932-0609
1 vote
Anna M Brocco, Agent, Williston Park, NY
Wed Feb 27, 2013
Depends on the circumstances that are leading you to the short sale path; generally it can take two to three years, and much will depend on your credit, income, etc. If purchasing in cash, you can buy anytime.
1 vote
Melissa Goss, , Center Moriches, NY
Thu Mar 28, 2013
Your credit will take a hit, it will be around 2 years- but you have to be making good with credit payments... to improve your credit score and purchase you are looking at around 2 years.
0 votes
Annie Torres, Agent, Hauppauge, NY
Mon Mar 4, 2013
Roberto, I'm a local agent and I know Javier is absolutely right. It will all depend on your situation and if you are still paying the mortgage or not. Short sales are not only negotiated because you stopped paying the mortgage, a homeowner can submit a short sale package simply because the property is not worth the amount the homeowner purchased it for. If you are not paying your mortgage then you will not be eligible for a mortgage within at least 2 yrs. As far as your credit, again it depends if you are paying or not.
0 votes
Gina Walter, Agent, Moriches, NY
Thu Feb 28, 2013
Usually 18 months to 2 years
0 votes
Cynthia Mart…, Agent, Town of Islip, NY
Wed Feb 27, 2013
Yes you will be able to buy another house within a year and half to two years. about your credit, once you're done with short sale sale, you will have to start working on your credit from now on not being late on any other of your credit lines, when the short sale is complete with the sale your credit will have a very hard impact. but you can start all over again with your credit cards like you did it from the beginning. if you have any further questions I can help you do not hesite to call me.

P.S: in case you do not have any credit cards right now you can go get a prepaid card and any bank that offers that service.
0 votes
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