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Comment by Tara Samney on May 23, 2013 at 4:53am

I've warned some potential clients of this here in VA after seeing this post before.  Oddly, at least 2 of them have told me that they discussed it with their mortgage brokers (buying a house first before the short sale closed on the spouse and was told it was no problem- (not a FHA loan though).  I'm dubious, especially when guidelines are constantly changing.  I try to avoid those situations as much as possible.

Comment by Kevin - Greenville, SC on May 10, 2013 at 6:02am

I have heard this as well from Mortgage Brokers.

Comment by Bryant Tutas on May 10, 2013 at 5:29am

Ho Bill. Glad yo like the network. Wendy and I have put a lot of time and effort into it. There are certainly exceptions to everything when it comes to mortgages. I've had several buyers recently that were denied financing over this. And I have had several sellers have no issue at all.

There are many factors that go into getting a mortgage approval.

I wrote this article so agents will know when asked the question that the answer is "maybe" not "yes". Work with a reputable lender and have them look at the borrowers complete situation.

This may also not apply to all mortgage programs.

Comment by Bill Shouldice on May 10, 2013 at 5:03am

Well this is my first time posting here, but I am a constant follower and think that this is a PHENOMENAL site.
Really great info and its nice to know that fellow Agents/Brokers can bump ideas off each other to not only become more educated, but also to get these deals closed for their clients who are trusting them with their future well being... I am an Illinois Broker and it might be a State to state type scenario, but I am not too sure it is.
Reason being, I have also closed actually 3 Short sales that the spouse, even though on the deed at the time, was able to purchase. This also was both during the short sale process and after the deal had closed. The reason I do not think it could be state to state is because 2 of the spouses / buyers, purchased FHA and FHA guidelines do not go state by state correct?
Either way, this is just what scenarios I have been through and closed, so I hope this helps in some way.
Realistically, my suggestion would be to have the spouse that is not on the loan, just quit-claim the deed to the spouse/borrower on the note and have it filed ASAP before it closes.
That should clear it up and eliminate the scenario all together, hopefully this would not affect the short sale paperwork already submitted, because typically what I have seen and been through, the lenders do not require paperwork from anyone that is not a borrower on the loan for the property.
Good luck!

Comment by Shawn Wilkinson on May 10, 2013 at 3:15am

We have had clients successful in having the spouse buy a home before the SS is complete. I am unsure of people who planned to try this after the fact. There is a lender out there who is willing to overlook about anything. 

Comment by Minna Reid on May 10, 2013 at 2:24am

This "marital home" thing must be a Florida thing. I have seen several short sales by one spouse on mortgage  - where the other spouse is unaffected and turns around and buys a house. At least here in CT. In fact I have one now. I am short selling "her" house while he buys "his" house. He got the clear to close yesterday.