<![CDATA[San Diego Short Sale and Foreclosed Homes - When Can I Buy Another Home?]]>Tue, 13 Sep 2011 18:44:02 -0800Weebly<![CDATA[Can I sell on a Short Sale and Immediately Buy Another Home?]]>Thu, 12 Nov 2009 12:32:22 -0800http://www.sandiegorealestate360.com/122/post/2009/11/first-post.htmlAs a short sale specialist with plenty of former clients having done short sales this is very interesting.  Until I ran into  this article I was under the understanding unless you do, “semi-fraudulent” credit repair to remove legitimate entries left on your report after a short sale, you will not be able to get a new home typically for 2 years is the quoted time. I say that simply because that is Fannie Mae’s requirement.  This is very much better than if you just let a house foreclose. Fannie Mae makes you wait 5 years to get a loan in that case.

This article claims there is a lender that will do a write you a loan for a new house the day after you close the sale on your current home on a short sale. There is a catch though.

If you do a google search on the internet, you will see plenty of sites claiming that FHA requires you to wait 3 years after a short sale or foreclosure in order to get a loan.  However if you look around you will find that there are no FHA guidelines that require a certain waiting period from the time of a short sale in order to get a new FHA loan.  However most FHA lenders have arbitrairly added the 3 year wait into their own guidelines.  The catch is that you have to otherwise qualify for an FHA loan which is no easy task.  The biggest hurdle for at least most of my clients is that is that if they need a short sale they are in a financial hardship.  If they are in a financial hardship they have missed payments.  A short sale doesn’t erase missed payments.  It simply avoids a foreclosure.  In addition to this most short sale lenders will tell you that in order to do a short sale you need to be a certain amount of time behind in your payments or at the very least be able to show on a financial statement that your situation is so dire that you will be quickly going behind in your payments… and even if a lender doesn’t require you to miss payments… if you haven’t missed any payments they have little motivation to work with you on a short sale when they have thousands of more urgent cases of homeowners many months behind in payments that need their attention.  Why all this talk about missed payments?  You can’t get an FHA loan with recent missed mortgage payments.  That is the real catch.

The good news is however that if you have 12 months of good history FHA guidelines do allow you to get a loan which is a lot better than waiting 2 years or 5 years.  However few lenders have been willing to do this in the case of a short sale until now.
 

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