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Can i get a mortgage after a short sale?

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NVHannons

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We recently sold home in Las Vegas as a short sale, and wondering how this affects our ability to get a mortgage.  We did not have to sign a promissory note as condition of the short sale. Reason for the short sale was relocation due to job transfer.  Wecould not qualify for loan modification, since home in LV was not owner occupied so short sale was our only option.  We are looking to buy a home in NC. 
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July 12 - Cary
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Julie Messina, "CNN Mortgage"

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With the exception of private money (hard money) financing, after any kind of default on a mortgage you can generally expect to wait four years for new conventional financing, or three years for a new FHA loan. 

Lenders have set the bar at 620 to obtain an automated underwriting (AUS) approval, and the trend is moving up (some lenders like Chase have set the bar at 660).  Monitor your credit scores and pay rent on time as your rental housing history will count when you apply for a mortgage down the road. 

Fannie and Freddie (who are owned by our government) are requiring that lenders adhere to the AUS decsion if they want to close loans that can be sold (about 85% of all mortgages originated today are sold to these Agencies).  The AUS engine reflects current Agency credit policy in this market.  I think you would be setting yourself up for disapointment if you expected to get an Agency loan in under 3 or 4 years.

You are not alone...Many good people have seen thier credit rating tank due to high leverage when the value of thier (RE) assets fell and we are still not out of the woods yet.  Hang in there.  Time cures everything.
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August 30
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Bob Lowery, "Bob Lowery"

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That is a tough position to be in. 

I am very impressed with Bob and Team Coldwell answers for being agents.  Their advice and knowledge was better than most of the LOs on the thread.  Very scary.
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August 30
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Juls225

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We too sold our home as a short sale in Vegas due to a job transfer. I've read that if a person has extenuating circumstances, like a job transfer, they maybe can get another mortgage. Not true, as we tried and will have to wait the two/three years.  It saddens me that before this short sale we ALWAYS paid on time, and this job transfer was not our doing, but now we cannot get a mortgage due to short sale showing on our credit.  We are good people and pay our bills on time(i'm a junior accountant so i know better not to pay our bills)... but when the company says your being transferred in two weeks - then what are you to do?
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August 30
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Bob Duckworth, "Bob Duckworth"

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Currently, short sales are reported the same as foreclosures, as a relief of debt, and have an adverse effect on our credit rating. Even if you were current on your payments, you should expect your FICO score to drop by 100 to 300 points following the short sale, depending on the situation. Fannie Mae guidelines say you can apply for a new loan immediately after a short sale IF you kept the payments current, had no delinquencies of more than 30 days and did not agree to debt relief repayment. If you were behind, Fannie Mae requires a 24 month wait after a short sale before applying for a new loan. Keep in mind, however, that the interest rate may be considerably higher than the prevailing rate. You may well be seen as a high risk borrower because of the previous short sale.
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July 14
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Kendall Fulton-Barnes, "kfb1"

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Most short sales are look at as a forclosure, which mean you can not purchase for thee years.  But if their are compensating factors the possiblity of getting a loan is good.
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July 14
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Darrell Tabar, "CFCU Home Loans"

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Yes, but it depends on your credit.  Most people who conduct a short sale are most likely late on your mortgage.  Mortgage lates and a low credit score will hurt your chances of obtaining a mortgage.

If your credit is great and there are no mortgage lates, just a short sale.  Then you shouldn't have any issues getting a new mortgage.

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July 13
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Nathan Wolf, "natewolf"

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You should contact a lender and/or obtain a copy of your current credit report. There is always a way to purchase, even with poor credit. Non-bank financing such as seller financing, assumable mortgages (they're out there, and making a come-back), and a lease-purchase which after 1 year can often be "refinanced" as a mortgage refinance. So, find out where you stand now-- how it's showing on your credit file. Then ask your question again.
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July 13
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Team Coldwell, "LasVegasShortSales"

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Right now, the lenders are saying 2-3 years before you can get a new loan if you completed a short sale. That being said, it's best that you talk to a lender that specializes in that area.

We wish you the best!
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July 12
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Sean Cochran, "scochran1"

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It is all going to depend on how it reports on your credit bureau. If you were on time with the mortgage with no delinquencies, then yes. You should be able to get another loan. If your credit shows that you were late or almost in a foreclosure, then no.
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July 12
 

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