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Mortgage after short sale.

It has been nearly two years since I did a short sale on my second mortgage.  I have never missed a payment even through the short-sale process.  Is there a lender out there that will finance me?  My credit scores are about 680.   There is alot to my story but essentially it had to do with job loss and divorce.
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July 31 2013 - Manchester
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Answers (8)

Here's an excerpt from my recent blog post on the topic:

Borrower Current at the Time of Short Sale:

A borrower is 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.

Borrower in Default at the Time of Short Sale:
A borrower in default on his/her mortgage at the time of the short sale (or pre-foreclosure sale) is NOT eligible for a new FHA-insured mortgage for 3 years from the date of 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 the caused the default.

CONVENTIONAL

Fannie Mae:
2-7 year waiting periods:
- 2 years – with a minimum down payment of 20%
- 4 years – with a minimum down payment of 10%
- 7 years – standard down payment requirements

Freddie Mac:
4 year waiting period, but exceptions may be made for "extenuating circumstances."

VA

Does not have specific short sale requirements, so it will depend on the lender. Some may require a two year waiting period, and some may require no waiting period if the borrower was current on mortgage payments and other monthly debts 12 months preceding the short sale.

USDA

Three year waiting period.

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August 01 2013
You may good to go, but there are a few caveats that allow for the short sale.  Technically you can do a short sale on day after the short sale if you have not been late in the previous 12 months on the short sale.
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August 01 2013
I would contact lenders in your area.  If its been two years you should be able to find someone who is willing to work with you in obtaining a new loan.  Good luck to you!
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August 01 2013
I personally qualified for another mortgage 23 months after a short sale on my home in Nevada.  A lot has to do with how delinquent the loan was, current income, and how the sale was dealt with (remaining deficiency, characterization).  

If you send me your contact info, I will put you in contact with the lender I used (no reciprocal agreement, no expectations...just good people...and I am a skeptical type). 
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July 31 2013
IF it has been two years, then this should not be an issue with FHA, VA or USDA. Please find a lender who can run CAVIRS for you. That is a data base that will show if you are black listed from any government sponsored loan.  
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July 31 2013

I am a Mortgage Consultant with a National Lender, and as long as you didn't have any 30 day late mortgage payments, I would be able to do an FHA loan for you. Please feel free to contact me through my profile at anytime. Thank you, and I hope to have the opportunity to speak with you in the near future.

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July 31 2013
If you are  in the military than you can apply for a loan after two years. Otherwise, it's three years.I have not come across any lender that will do a loan sooner than three years. I hope this helps.
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July 31 2013
If it has been two years, you may have a chance with some lenders.  Best thing to do would be to contact a few local lenders in your area and ask them if they have any options that will work for you.
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July 31 2013
 
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