If I do a short sale, can I honestly buy another house afterwards?

Asked by J Mario Preza, Daly City, CA Tue Feb 15, 2011

Here is another question I recently received from a homeowner who actually hired me to sell his house. It wasn't until I pointed out that doing a short sale virtually makes buying something else (in the short term) almost impossible -- unless they bought with a co-signer. Is this your understanding of the situation, or am I off base?

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7
, ,
Tue Feb 15, 2011
BEST ANSWER
If you where not behind in your mortgage payments in the last 12 months of ownership, you need to wait 2-years. Although,, if you meet certain criteria, you may be able to buy right away. (A very slim chance.)

If you were behind on your mortgage payments, you will need to wait 3-years.

Happy funding, Rudi
Web Reference:  http://www.umboc.com
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Tue Feb 15, 2011
Sure you can buy another the next day. They will have to do one of two things - hit the lottery or have cash.

People have no idea what a short sale is for sure.
1 vote
, ,
Tue Feb 15, 2011
J - Rudi is spot on. I think people hear "it's possible with extenuating circumstances" and think that's going to work. On a national forum like Trulia I'm sure we're going to get some lender on here who says "I CAN DO IT!" And maybe they have. I can tell you in 20 years of originating FHA loans I've never had an Underwriter approve an "extenuating circumstance," and I doubt there's much chance of it happening now.

Just a few short years ago banks and lenders weren't forced to buy back a loan until the borrower actually went into default - now loans are being kicked back due to guideline violations even if payments are being made on time. Since no lender wants to buy back a loan there is virtually no "judgment calls" being made by Underwriting these days. But sure..someone will chime in "but I can get it done." Ok.

Does that mean loans are getting turned down all the time? Nope! Only those that shouldn't be approved in the first place. If the borrower has a job, income, decent credit, and a few thousand dollars for an FHA down payment then they are getting approved every day.

You gave your client valid counsel.
0 votes
Dallas Texas, Agent, Dallas, TN
Tue Feb 15, 2011
Yes it up to 2 years or longer.

Short sale will "tank credit scores" if they were lease could be double , triple deposit + 1st month rent UNLESS they lease an apartment

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Eli Givoni-S…, , Boca Raton, FL
Tue Feb 15, 2011
Unless they pay cash. If you need help with your short sale, please give us a call. We are a professional short sale service and would be happy to explain the process to you. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states
0 votes
Alma Kee, Agent, Tampa, FL
Tue Feb 15, 2011
A short sale with "extenuating circumstances" will allow a buyer to purchase a home in 2 years.
0 votes
Michael Emery, , Minneapolis, MN
Tue Feb 15, 2011
Two ways, cash and contract for deed/land sale. Otherwise, they're going to have to wait.
0 votes
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