Purchasing a home after a short sale...

Hi Bonnie;Concerning a FHA mortgage and a short sale-"A borrower is not eligible for a new FHA-insured mortgage if he/she pursued a short sale agreement on his/her principal residence simply to take advantage of declining market conditions, and purchase a similar or superior property within a reasonable commuting distance at a reduced price as compared to current market value." The rules that apply to borrowers who were current on their mortgages at the time of the short sale say you are "considered eligible for a new FHA-insured mortgage if, from the date of loan application for the new mortgage, all mortgage payments on the prior mortgage were made within the month due for the 12-month period preceding the short sale and installment debt payments for the same time period were also made within the month due." If not, it is a 3 year waiting period. A borrower who sold his/her property under FHA's pre-foreclosure sale program is not eligible for a new FHA-insured mortgage from the date that FHA paid the claim associated with the pre-foreclosure sale. Exception: A lender may make an exception to this rule for a borrower in default on his/her mortgage at the time of the short sale if the default was due to circumstances beyond the borrower's control, such as death of primary wage earner or long-term uninsured illness, and a review of the credit report indicates satisfactory credit prior to the circumstances beyond the borrower's control that caused the default."Hope this helps,Pete

FYI, with 20% down you could start looking righ tnow (assuming all other qualifications are acceptable)

This is very simple. Your three years needs to FULLY expire before you Both write an offer and make "formal" application. You will want to use the date that Title transferred AND recorded on your short sale. There is no reason you can't get pre-approved ahead of time, but everything in your file must be dated after the three years, including Appraisal, Credit Report, Application Date and Purchase Agreement. The waiting period is shorter on a conventional with 10% down. If you want to see the a summary GOTO: www.mikesilkworth.com - choose Resources Tab - choose waiting periods.

4/30/2014Bonnie - thanks for the posting Would you like to begin the pre approval process now ?I would be happy to send you a helpful " waiting period matrix" ..all the best and stay in touch Thanks Dave SKow Eagle Home Mortgage206 714 9745daveskow@eaglehm.com