Comments on: FHA Guidelines Buying A Home After A Short Sale

By: Kristina Alfaro

Kristina Alfaro — Sat, 16 Apr 2011 04:27:37 +0000

Hi my husband and I just completed our shortsale and never missed a payment and our trying to purchase a new home 100 miles away were my husbands job is located but all three bank we applied with turned us down, Do you know of any lenders/ brokers that specialize in loans after a shortsale?

By: Trixie

Trixie — Thu, 17 Mar 2011 21:29:46 +0000

The irony in the FHA rules is that as they are written, it actually rewards people who did short sale for gain, as opposed to those who were in a situation beyond their control.

Think about it. They say you can buy again without waiting if you didn’t miss any payments, but that you can’t do it if you did a short sale purely to take advantage of a declining market. So wouldn’t it make sense that the people who were struggling with their mortgage payments are precisely the people who are NOT trying to capitalize on the falling values?

This makes no sense. If you are current on your payments and not struggling, and you’re trying to buy a cheaper house right away, then you obviously are trying to take advantage of dumping a more expensive house so you can erase the debt on the old house.

The people who were truly struggling with the payments and had to short sale, should be given a one year, not three year, window to improve their credit, and rebuild, then buy. This FHA rule seems to favor people that is supposedly seeks to stop. Totally nonsensical.

By: admin

admin — Tue, 25 Jan 2011 18:17:00 +0000

Good question…actually, FHA standards are up to 24 months, after a successful short sale. 5 to 7 years if a foreclosure was involved.

By: Eren

Eren — Mon, 24 Jan 2011 18:42:59 +0000

what are the current rules as of today 1/24/2011 for making a new purchase after a short sale if you have never been late on your mortgage? please shed some light. i do not want to short sale my house if I will not be able to buy for 3-7 years.

By: Kim

Kim — Fri, 01 Oct 2010 04:17:02 +0000

Hi, I have a question. In Jul. 2010, I completed a short sale (Legally paid in full for less than the full balance). At that time, my credit score was 741. As of today, Sep-30- 2010, my credit score dropped to 689 & has a KD on it for the month of Sep. Question 1: What does KD signify & for how long will it be on my credit? Is there anything I can possibly do to have it removed? Question 2: Is 689 score & the KD considered low/bad/not so bad/fair/good, etc.? Please, explain. Also, how soon will I be qualified to apply for an FHA loan, keeping in mind that my credit report does not show any late payments on the mortgage (with the exception of the KD reflected for the month of Sep. 2010 after the completion of the short sale)? I’d highly appreciate your comments. Thank you.

By: Abbi Witty

Abbi Witty — Fri, 17 Sep 2010 16:32:18 +0000

In California, the FHA approved banks ARE NOT making loans to buyers who have a short sale, even if they are current on their payments and have good credit history. They are claiming that all short sales are take advantage of declining market conditions and won’t even accept evidence to the contrary. I have one of the top mortgage brokers in S. California looking and he has 3 clients right now, including me, who the banks are turning down. Is there some place that we can report this to?

By: Angela M

Angela M — Thu, 02 Sep 2010 20:31:14 +0000

Jennifer,
So sorry to hear about your situation. Can you tell me how much the balance owed on the home after the short sale and the promissary note they made you pay? I am just curious b/c we are in the same boat and I was wondering if it is worth it.

By: Krista B

Krista B — Sat, 28 Aug 2010 02:57:36 +0000

Bank of America for both loans.

By: admin

admin — Sat, 28 Aug 2010 01:27:15 +0000

Thank-you for your question. Who are your lenders?

By: Krista B

Krista B — Sat, 28 Aug 2010 00:40:25 +0000

We have 2 FHA mortgages on 2 different homes in 2 different states. We have owned the Colorado home for 5 years and it is still in an upside down mortgage. We relocated for work to Florida 1.5 years ago and then after a year that job ended so we relocated back to Colorado. My husband has found work but he’s making 50% of what he was making before. Our Florida mortgage isn’t upside down as it was a short sale purchase. The home is currently on the market to be sold. Our Colorado home is also on the market to be sold and we hope that atleast one will sell before they go into foreclosure. I’ve tried paying one one month and the other the next month but I just can’t keep this up. Will we qualify for a HAFA short sale? I’ve tried to do loan modification per HAMP and was denied because the bank tells us we can’t afford both homes. I’m very aware of this. I don’t want to own anything right now as we may have to relocate again for work. Any advice ?