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Can we buy a home after short selling? We have excellent credit other than short sale hit to cdt.

Can we buy a home after short selling our current home?  We have excellent credit and have not defaulted on our current  mortage.  Is it even possible to purchase after we sell our home?
  • April 03 2009 - MacDonald Ranch
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Answers (4)

Just talked to an underwriter about this very thing two weeks ago. It will be treated exactly like a foreclosure by a lender if the credit report indicates anything other than paid as agreed. That means 3 years minimum before you would qualify for another loan just as indicated below. That includes FHA financing as well.
  • April 22 2009
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Profile picture for SoCal Engr
Looking at the two prior responses, please remember two things...

First, the more creative the solution - typically the more risk is involved.

Second (and it sounds like you may know some of this first-hand), consider what happens when the "risk" becomes "reality".
  • April 22 2009
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Conventional financing cannot lend for at least three years from the date of the short sale.
  • April 21 2009
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It is possible to purchase a home after a short sale with good credit.  Barring what the credit report says.  It really boils down to timing.  If the previous mortgage company has noted the mortgage "Paid" than you are good to go, but if the "Paid" mortgage is noted as "Settled for less than ..." then you will be in merky waters.  The big thing is if there was a second . . . then traditional financing will not be possible because of what will be noted on your credit report.

You will be successful in a Seller Carry Back.  Find an agent who can work with you on finding a home that a Seller is willing to carry the loan.  If you have patience, try a fixer upper, you get a better deal and perhaps some fixer upper financing.
  • April 03 2009
  • 2Yes

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