Home Buying in San Jose>Question Details

Scott, Other/Just Looking in Elk Grove Village, IL

Need advice for getting mortgage after short-sale

Asked by Scott, Elk Grove Village, IL Tue Mar 19, 2013

I had a shortsale last year with 90 days late on record. My current FICO is 658/678. I have good income with same employer for 6 yrs and no other late payments other than the mortgage late during short-sale.
I know it will be tough but I'm wondering if I can qualify for a mortgage with about 10% down payment. FHA has "extenuating circumstances" exception so I'm wondering if anyone out there has experienced in qualifying such option. Your advice is greatly appreciated.

Help the community by answering this question:


Extenuating circumstances is a one time economically devastating incidence.
Job loss is not considered extenuating.
Health issues not extenuating.
Extenuating circumstance is almost limited to death of a co-applicant on the mortgage causing a one time economic disaster and forced sale.
I have seen death of child, divorce and accidents all get declined as extenuating circumstance.
Lenders are standing firm on this.
2 votes Thank Flag Link Tue Mar 19, 2013
sounds like i won't stand a chance. Thanks for the info.
Flag Tue Mar 19, 2013
He probably already got his answer as this question is over a year old.
1 vote Thank Flag Link Mon Aug 4, 2014
There is no exception to the 3 year FHA rule regarding short sales when there was a late payment. Even one, 90 day late disqualifies you from FHA financing for 3 years.

With 10% down and extenuating circumstances you "may" be able to get conventional financing after 2 years.

Your first step is to find a qualified, licensed loan officer that will guide you on what you need to do to prepare for ownership again in the future.
Web Reference: http://WeFixRates.Com
1 vote Thank Flag Link Tue Mar 19, 2013
Thank you for your question, Scott. From my experience, "extenuating circumstances" are more "extenuating" than one may realize. The only circumstances I have seen considered "extenuating" by an investor are either death of primary wage earner, or serious illness of wage earner. Otherwise, you would be looking at 3 year waiting period after your short sale. If you are considering conventional financing, the short answer is you would need to wait 4 years (new rule starts August 16th, 2014).

I mention this in further detail in this response: http://www.trulia.com/voices/Financing/Advice_for_finding_le…

I hope this helps you, and please let me know if you have any additional questions.

Dave Setti
Turnkey Mortgage Solutions
0 votes Thank Flag Link Mon Aug 4, 2014
My house is worth 525000.00 and I owe
220000.00. I want to get a new loan with my daughter on it. We would share the payment and interest deduction. My lender turned us down because she has a two year old short sale on her record. She helped a friend buy a house and the friend stopped making payments when the market collapsed. Is there anything we can do?
0 votes Thank Flag Link Wed May 28, 2014
You don't have to wait.....

We have a portfolio "2nd Chance" loan that allows you to buy again just one day after Short-Sale or Foreclosure. You can only have one on your credit and you will need a 20% down-payment and 660 mid FICO score. Late payments are acceptable.

This loan is available in - AZ, CA, CO, DC, FL, HI, IL, MD, MT, NV, NJ, NY, NC, OR, SC, VA, and WA . Loan amounts up to $4 million +
0 votes Thank Flag Link Thu May 22, 2014
Craig, has anything changed with that program? I had to do short sale on an investment home and now short sale is going through on my primary home.
Flag Wed Mar 4, 2015
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 Thank Flag Link Sun Jul 28, 2013
A shortsale wait period is 2yrs.
0 votes Thank Flag Link Wed May 8, 2013
I had a short sale last year and my Realtor recommend http://www.cfs-mortgage.com/flex for a home loan. I a very happy to be able to purchase again.
0 votes Thank Flag Link Mon May 6, 2013
Hello Scott,
I happen to have a program specifically designed for this situation. It does require 25% downpayment but it can come from a gift. You can find more info on my website at http://www.HomeLoansByBrown.com or call me at 858-922-4709

Thanks and I hope to hear from you.

Andy Brown
0 votes Thank Flag Link Mon May 6, 2013
Thank you for your question, Scott:

Unfortunately it is very difficult to get financing after a short sale, no matter what the circumstances were.

I recommend that you contact The Neighborhood Assistance Corporation of America. Their acronym is NACA.

NACA is a HUD approved non profit organization that will help you buy a home as soon as possible. NACA does not charge any money for it's services and in my opinion they are the best source of information to help you qualify for financing after a short sale.

As the other responders pointed out, it may take some time to qualify again, but you can do it!!!

I recommend that you go to the NACA website at: http://www.NACA.com for more information.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
0 votes Thank Flag Link Tue Mar 19, 2013
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