Archive

Category Archives for "After Short Sale Foreclosure"

You are able to own a home again after a short sale. Do you want to know if you qualify and the steps to take in order to purchase a home again? Find it here.

Can I Buy a Home After a Short Sale

Is it a good idea to stop making mortgage payment while the home is in short sale?

Are you thinking whether you should stop making mortgage payments while the home is on short sale? If so, then you’re required to consult with the lawyer whether to stop making payments. Well, avoid asking your real estate agent as he is not licensed to offer you legal advice. There are certain benefits as well as consequences if you stop making payments. You can continue reading the article to get more information on it.

Can you tackle the trauma of foreclosure?

In most of the cases, the lenders do not authorize a short sale unless the seller gets hold of a buyer. Well, it’s the discretion of the lender whether he’ll let you sell the property on short sale.

You may begin the short sale process and stop making payments and if the short sale is denied, in this case, the lender can foreclose on your property. Most of the sellers are prepared for the worst scenario as the lenders may not approve their short sale.

What are the benefits of mortgage payment in short sale?

Here are some of the benefits of mortgage payment in short sale that you need to be aware of:

1. Can apply for new mortgage: The guidelines issued by Fannie Mae in August, 2008 stated that the borrower may immediately buy another home after short sale if the borrower has not defaulted on payment.

It’s really difficult to find a lender who’ll conduct a short sale but there are smaller banks those who do not sell to Fannie Mae and consider this kind of loan. According to the FHA, if the buyers has never defaulted on payment, he can get the loan with ease. According to the HAFA 2013 guidelines,  the lenders are allowed to report “Paid in Full”, so it makes a great difference on a credit report.

2. Shields your credit report: If you make your mortgage payment on time while you’re entering the short sale process, then the credit report may not reflect any late payment.

3. Cancel without any penalty: Well, if the home is not sold or lender refuses to accept the offer from the short sale buyer, you can manage to cancel the listing as well as keep your home without foreclosure process.

What are the disadvantages of delinquent account during a short sale?

Here are some of the drawbacks of default during your short sale:

1. Blemish your credit report: Short sale and foreclosure may blemish your credit report. In most of the cases, the lender may report as a delinquent account to the credit bureau. But the lender can report a short sale as paid in full only if you’ve completed a HAFA short sale after 2013, it may not affect your credit.

2. Face problem while buying a new home: There are restrictions if you’re planning to buy a new home as the number of foreclosure and short sale is increasing. If the buyer is late by 60 days and according to the guidelines of Fannie Mae to wait two years to buy another home.

3. Foreclosure process on the property: Your property can be foreclosed by the lender if you default on your payment.

Therefore, make your payments while the home is in short sale as it can help you to avoid foreclosure on the property.

 

Rikk Miller

Buy A Home After A Short Sale


Is it possible to get a mortgage loan after a short sale?

Studies reveal that short sales and foreclosures comprise about half of real estate sales as more and more buyers are not being able to repay their mortgage loans and retain their homeownership rights. Spring 2013 saw a large number of real estate sales as more and more buyers snatched homes at lower prices than the actual. When you’re about to face foreclosure and you can’t afford a home, you might as well qualify for a short sale, even when you don’t think that you can sell off your home. You must be wondering how you could get into a good short sale deal with your mortgage lender. You will need certain amount of patience, fortitude and a lot of good fortune in order to complete a short sale. Read on the concerns of this article to know more on a short sale.

 

Short sale – What is it and how does it work?

 

When you take the decision of selling your home for an amount which is much less than what you owe to the mortgage company, this is called a short sale. Buying a real estate property that is sold through a short sale is certainly different from buying a home which is owned by the bank, known as real-estate owned property or a property that has been in foreclosure. This process is also called a pre-foreclosure sale and when your mortgage company agrees to a short sale, you can easily sell off your home and pay off the mortgage balance with the proceeds. A short sale can be a lucrative alternative to foreclosure when you’re:

 

  • Ineligible to modify your mortgage or opt for a refinance
  • Behind on your monthly mortgage payments
  • Underwater on the mortgage loan
  • Not being able to sell off your home at a price that covers what you still owe on the loan
  • Facing dire financial straits
  • No longer being able to afford your home and you need to leave right now.

 

Getting a home loan after a short sale – Is that possible?

 

When you’ve already gone through a short sale, this doesn’t mean that you have to put an end to the dream of home ownership. All underwater homeowners who sell off their homes for less than what they owe are actually able to qualify for a home loan. A second try to owning a home won’t happen overnight and hence you need to make a lot of calculations through a home mortgage calculator in order to know whether or not you can immediately qualify for such a loan. Today’s lending environment is extremely tight and this is why most homeowners tend to think that it is almost impossible to qualify for a home loan after a short sale. But there is certainly a ray of hope even after a short sale. Here are the minimum requirements to grab a loan after a short sale.

 

  • The short sellers usually have to wait for at least 2 years after closing the short sale to get a mortgage loan.
  • The short sellers usually have to wait for 4 years with a 10% down payment on your next mortgage loan.
  • The short seller has to wait for 7 years if he pays down an amount which is even less than 10% of the loan.

 

For getting FHA loans, you have to wait for a 3 year waiting period since the closing date of the short sale. Meanwhile you can try your best to repair your credit score in order to become a favorite among your lenders yet again and get a mortgage loan within your means.

by

Rikk Miller

 

 

2

Get a mortgage after Short Sale | Foreclosure

Get a mortgage after Short Sale | Foreclosure

I had a Bankruptcy on my FHA loan, when can I loan again?
3 years from the discharge date.

I had a Bankruptcy on my Conventional loan, when can I loan again?
4 years from discharge date.

I had a Bankruptcy on my USDA loan, when can I loan again?
3 years from discharge date.

I had a Foreclosure on my FHA loan, when can I loan again?
For most, 3 years from the date on Certificate of Title. If it is more than 3 years but less than 7 years, LTV could be limited to 90%.

I had a Foreclosure on my Conventional loan, when can I loan again?
7 years from the date on Certificate of Title.

I had a Foreclosure on my USDA loan, when can I loan again?
3 years from the date on Certificate of Title.

I had a Short Sale on my FHA loan, when can I loan again?
3 years from the date on the Short Sale HUD1. But there is an exception if there were no late mortgage or installment debt payments.

I had a Short Sale on my Conventional loan, when can I loan again?
4 years from the date of the short sale HUD1.

I had a Short Sale on my USDA loan, when can I loan again?
There is no seasoning requirement with GUS “accept/ eligible” findings. For manually underwritten loan, the risk level will be evaluated depending on case-to-case basis.

I have requested for a Mortgage Modification on my Conventional and FHA loan, how long do I have to wait?

Other Articles to Read:

Gainesville Florida Renter Rights During Foreclosure

Choosing the Best Offer for Gainesville Short Sales

Do I Have to Pay for the Real Estate Agents Commission?

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.

Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents