FHA waiving waiting period post short sale

The only way we will know is when FHA releases a Mortgagee letter, anything prior to that is just speculation...we know that there's been talk about either reducing or eliminating the short sale / foreclosure waiting periods, but again.. It's just talk until FHA approves it.. Keep in mind that if this is approved and FHA is willing to waive the waiting period, it doesn't mean the lenders will.. FHA does not lend money, they only insure loans.. So even if FHA approves it, you still have to find a lender that will... my guess is that not many lenders will jump on board for this type of loan product right out of the gate.. Also keep in mind that all the other loan requirements will likely still be in effect.. Debt to income, job time, minimum credit score requirements, etc.. all will have to comply to existing guidelines... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

There is much debate about a variety of pending changes for HUD and FHA. Nothing is considered final until a mortgagee letter is released to announce any changes. Once the mortgagee letter is released with the details of said changes, the time frame for making the changes will also be publicized.

Right now, anything you may read is just chatter. I can't see them adding more risk to their already challenged financial health. FHA is in pretty bad shape since they have taken big hits on claims in recent years. If there is a mortgagee letter issued on this subject, that will be the first we know. You can always check yourself via the FHA website where they publish the mortgagee letters here: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee Or, you can stay in touch with me and I'll inform you of any changes. I am an Illinois mortgage lender located in Schaumburg barb.lanis@1amllc.com

Don't count on it ever happening. With HUD's latest report to Congress which shows the bleeding from loan losses has not slowed, it is extremely doubtful they will implement a rule that allows more, risky loans to be insured. Yes, if you have a short sale, you are deemed a risky borrower. The exception is for short sales that the borrower did not pay late on in the last 12 months of the loan. Don't laugh, they are out there. I've closed three of them this year. Late is defined as the payment NOT paid in the month due. A payment due on January 1st is "on-time" as long as it was paid by January 31st. If you meet this test, you are eligible now. If not, then you will need to wait, sorry. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

I wouldn't hold your breath - this would be considered additional risk-taking by FHA and with the problems they are having with the insurance fund it doesn't seem likely. On the other hand there are a significant number of people who could/would likely purchase again if it were waived which would be helpful to the housing market and economy, so who knows...

Until HUD sents out an updated mortgagee letter there are no changes. You will see an announcement from HUD and I am sure there will be a ton of chatter all over the internet the minute it happens

We will know when they release a mortgagee letter.

the only exception to the FHA waiting period is only if in the case you completed the short sale without any 30 day mortgage lates (which is quite rare).

Ditto on Williams Comment!!