Short Sale - Purchasing a 2nd Property

I don't deal with short sales much, so looking here for some advice.  I have a friend who owns a property as a primary residence, but they have another home that they are renting in another state but they bought at the height of the market.  The rent does not cover the mortgage and they are pretty under water.  They are trying to do a short sale.

However, an opportunity came up for another purchase in which they wouldn't be under water and they wanted to know if buying it would affect their ability qualify for a short sale.  I would imagine it would, I just wanted wanted to know if someone else had a more definitive answer. 

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Permalink Reply by Short Sale Superstars LLC on February 2, 2015 at 6:26pm

It really depends and there will not be a definitive answer in my opinion, but it is definitely a red flag. It can go both ways depending on the investor on the loan, the type of short sale program they would need to go through, and likely how deeply the parties digs into their situation and how they interpret it.

I have seen the following be a problem. A borrower purchased a property with a FHA loan and then purchased a new primary residence and moved into it. They tried to complete a pre foreclosure sale ( FHA short sale ) and HUD denied based on the borrowers recently purchasing a new property.

I hope this helps and let me know if you ever need anything at all

310-564-6389

www.ishortsalenow.com

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Permalink Reply by Nina Chen Landes on February 4, 2015 at 4:58am

Thanks Brett for your response!

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