Oct
05
Avoid Foreclosure Monroe County – Can I Purchase A Home Even After Going Thru A Short Sell To Avoid Foreclosure?
ByAvoid Foreclosure Monroe County – Can I Purchase A Home Even After Going Through A Short Sal To Avoid Foreclosure?
Our mortgage was a variable rate mortgage, and my husband had lost his job and bills were out of control… We decided to cut our losses and do a short sell and avoid foreclosure (which had started). At this present time we are slowly regaining financial abilities even thru our country’s economic hard times…We want to purchase another home in about a year. Will banks see me as a risk, and deny me a mortgage because of my past situation?
8 Comments
October 5th, 2009 at 2:55 pm
They may not deny you, but it will probably be over a year before you can get into a new mortgage without putting a substantial amount of money down. Make sure that you are working on improving your credit right now.
October 5th, 2009 at 3:02 pm
You’ll have to wait at least 4 year and that’s if your credit is perfect from the time of the short sale on. unfortunately lenders view short sales the same as a foreclosure on credit, both lose the lender money and show that you are a risky borrower. Your credit is also probably shot from this anyway and in the current mortgage industry without scores over 680 or FHA it’s very hard for borrowers to get financing.
October 5th, 2009 at 4:32 pm
Not to be so blunt, but yes you will probably be denied. Bank’s are taking extra precautions right now due to the foreclosure crisis. Even if you are approved it will probably be for an outrageous loan, and the last thing you would want to do is get in over your head again. When foreclosure has begun it will stick with you for a while. You should probably rent for a few years until things clear up.
October 5th, 2009 at 6:29 pm
In california, short sell is only going to stop you for 18 months then you may purchase. However, banks may ask for a letter stating what your situation is with the short sell before they approve you. My recommendation is to stay on top of your current bills, no late payments or what so ever, and try to save up about 5-10% of money for the new home. Good luck in your battle…..
October 6th, 2009 at 1:08 am
Even with not including the short sale if you had gotten more than 30 days behind in any of your bills that all shows up on your credit report as a negative and stays there for 7 years, yes even if you catch up on them so your score is no doubt already lower. It can drop fast, but takes a long time to improve, especially in todays market where money is tight
October 6th, 2009 at 4:40 am
Hi there you should check out this website, it can help answer all your questions, and possibly even attend seminars that can best educate you on these topics. check it out.https://therena.com/?utm_source=blog&utm…
October 6th, 2009 at 4:52 am
Check your credit score…it’s probably suffered from the foreclosure filings. Do you even have any money saved up? Don’t jump into another purchase so quickly!
October 6th, 2009 at 9:32 am
it is a partial deed in lieu and it will be 4 years —sorry–conforming or FHA