Short Sale Information April 2012

The most common question I get is; how long is the time period after a short sale before a mortgage can be obtained?The following is a brief, general rundown of the short sale waiting period guidelines for Fannie Mae and FHA.  Note that these guidelines are subject to change at any time and there may be other conditions. We are dealing with government-sponsored enterprises.

 Fannie Mae The standard waiting period to obtain a new Fannie Mae loan is four years, but it can be as little as two if you are willing to come up with a larger down payment than otherwise required, were it not for the short sale. Other guidelines can apply, so it is important to check with me first.FHA If current on mortgage payments and all other installment loans (such as car loans, student loans, etc.) for the 12 months preceding the short sale, there is a 2-year waiting period according to FHA guidelines. However, if you were in default on your mortgage at the time of the short sale (which is probably the case for most short sales), the waiting period for a new loan is 3 years.It’s possible that the waiting period can be reduced or eliminated if there are extenuating circumstances beyond your control that led to the short sale (such as loss of income due to death of family member, severe illness, etc.). Check with me for more information.

It is Important to Work on Rebuilding Credit Right Away Items that need to be resolved on the credit reports should be taken care of sooner rather than later. It will make it much easier to qualify for mortgage financing once the waiting period is over. Conclusion This is just a very general overview and other guideline nuances can apply. For more detailed information about a particular situation, call me. I always look at each file individually; there can always be compensating factors.

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