possible to get a loan with a 2nd mortgage chargeoff after short sale in Virginia?
We owned two homes. Our primary home dropped $150,000 value in the housing collapse almost overnight, the same for our townhome. Both were on 3 year arms that, after the interest adjusted up, we would have paid more than $1200 more every month. We could have picked up a 2nd job and paid it but we asked to be locked into a 30 year loan for both homes so that we wouldn't lose them anyway if interest adjusted up again. The banks said no and we ended up having to short sell our primary home. Our 2nd mortgage lender pursued us for the $80,000 note after the short sale which we couldn't pay. We would have paid up to $20,000 to close it off but they wanted $32,000, cash, no payment plan which would have taken every cent in savings that we had at the time. My husband said no. They charged it off. 2 1/2 years later we need a bigger house, another baby, preferably one cheaper than our townhome now which we kept, moved back to and is still on an adjustable mortgage. We can sell and break even. I would like to rent for a few years, save some more money but rents are higher than owning right now. Is there any chance we could get a home loan or are there many options in the market for owner financing or rent to own? Our credit was perfect before the short sale, in the 800's and our income is very good. My husband's credit is high 600's again now, climbing slowly every few months as we have perfect payment history on everything and low debt to income overall. If we can't buy a home now, is there some point when a bank would loan to us with this chargeoff or should we plan to save and buy a home in cash at some point? The banks have taken their pound of flesh from us. We paid a fortune for our two homes in the 3 years we had them both and only wanted them locked in so we could continue paying our obligations but they wouldn't work with us. We aren't giving them anymore...... by ttrosz_825_598 from Sterling, Virginia. Jan 7th 2013
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
A mortgage charge off is viewed the same as a foreclosure, and so you would need to wait 3 years from the date of the charge off before you can apply for another mortgage (FHA).. Unless you have VA benefits.. With VA, the waiting period is 2 years... It also depends on how it's being reported on your credit.. if it shows charge off, then the waiting periods above are correct.. if the lender pursued the debt and filed for a judgment, then you would have to pay the judgment prior to applying for a mortgage.. Keep in mind that the new lender will go by the date that show on the credit report.. 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
Scott Kinne (Skinne)
#27 ranked lender in Virginia - 74 contributions
You have basically two (2) issues that need to be addressed, the short sale and the Charge Off. The only financing that does not require you to wait a specific time period after a short sale is VA finanicing for Verterans. FHA requires at least 3 years unless you did not have any Mortgage Late payments during your short sale. Conventional financing requires you to wait 2-7 years depending on the down payment you could make for the new purchase.As for your Charge Off account, most underwriters are going to require that account to be paid prior to, or at settlement of a new house. Call me if you would like to discuss more about your options. Scott Kinne - First Heritgage Mortgage - NMLS# 182351 - 703-293-6146 in Fairfax VA.
Steven Ceceri (123LoanYes)
#12 ranked lender in Rhode Island - 723 contributions
Good Morning. I would like to go over the timeline and some possible options with you privately, so please send me a direct email by visiting my profile if you are interested. Thank you in advance!
Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions
You would have two options. 1. is 2 years after the short sale / chargeoff. It's the date when they reported that to your credit bureau that will register in Desktop Underwriting with Fannie Mae. So 2 years after that date with 20% down. 2. is waiting 3 years for FHA with 3.5% down. If you feel one of those options will work, get into touch with me. I do a lot of after short sale loans. My direct line is P: 888-320-7888 - www.MortgagesforAmerica.org - Ken Burrows
Jeremy Redlinger (JeremyR)
#29 ranked lender in Minnesota - 191 contributions
It all comes down to the dates reporting on your credit report.
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