Replies to This Discussion

Permalink Reply by Sara Mehrpouyan Los Angeles CDPE on July 24, 2011 at 7:31am

Caroline, I am not a mortgage broker myself-- however, I would have them speak to one about possible time required to qualify for a loan after completing a short sale. I have had clients ask about the possibility of one spouse purchasing a new property if they were not on the short sale property's mortgage. According to a loan broker, if the husband/wife file joint tax returns it may be an issue for just one spouse to qualify for a loan to purchase new property.

Permalink Reply by Valerie Pressley on July 24, 2011 at 7:50am

Because the client has an FHA loan, they are REQUIRED to be 30 days past due in order for the short sale to take place.  I had a client with an FHA mortgage and, to our great disappointment, they told us that they would not approve the short sale until the seller was 30 days past due.  Yes, you can immediately purchase another home with an FHA mortgage if you are not behind on your mortgage.  But if you already have an FHA loan, it's not possible.  If someone knows something different, I'd really like to know it because my client was making payments on time until we got to the point where the short sale approval was almost complete.  If you are behind when you do a short sale, you have to wait 3 years to get an FHA mortgage and 2 years to get a conventional mortgage.

Permalink Reply by ElizabethWeintraub00697006LyonRE on July 24, 2011 at 11:53am

Valerie is correct. You have to be in default to do an FHA short sale and then FHA won't let you buy another home because to do so you need to be current. FHA doesn't want any of its FHA customers back for at least 3 years. But if you're a conventional borrower who is dumping a conventional loan, hey, come on over. Of course, you have to move 600 miles away -- check the bank's overlays. There is a bank in San Francisco who doesn't have such overlays, though.

 

Elizabeth Weintraub

Broker-Associate #00697006

Lyon Real Estate

Sacramento Short Sale Agent

Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Permalink Reply by Napua Lucas on July 30, 2011 at 7:01am

I know of a buyer who was able to purchase a short sale property immediately after closing on his own short sale. This occured because he had a job transfer to another state so had to sell his home via short sale and was able to purchase another home in his new state of residence. I don't know if it was an FHA sale or purchase however.