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Answers (10)
- Norm D Plume, "America Needs Nixon!"
- Contributions:1670
are you eligible for HARP? If so the shortsale would have no bearing.
- Robert Lowery, "Bob Lowery"
- Contributions:2097
Difficulty will depend on the owner of the mortgage. I am sure there are some examples of people getting approved for a short sale without being delinquent, but many investors will not approve them unless they are delinquent. Some investors are easier to work with versus others.
Not only do short sales get approved without delinquency, but the same borrowers have and are successfully able to repurchase with the FHA exception Bob detailed. Short sales are not that hard for people with actual hardships. People who just want to dump the property because it's underwater; now that's a different story and they won't qualify for repurchase or refinance under the exception anyway.
- KKSka14
- Contributions:63
Interesting, Robert. I didn't know about that exception--learn something new every single day. You're correct, however, that it would be unlikely to get a short-sale approved without delinquency.
- Robert Lowery, "Bob Lowery"
- Contributions:2097
@Kevin, There is a "straight up" exception to the required 3 years for FHA loans if they were current at the time of sale on all debt for the 12 months preceding the short sale and the lien is paid in full.
But, IMHO...it will be difficult to get a short sale approved if the consumer is not delinquent.
There can be differences between lender's guidelines. These are called "credit overlays".
But, IMHO...it will be difficult to get a short sale approved if the consumer is not delinquent.
There can be differences between lender's guidelines. These are called "credit overlays".
- KKSka14
- Contributions:63
If we could attach pdf attachments I'd attach the waiting period chart, but Robert is basically correct. In order to refi conforming conventional at the normal guidelines requires 7 years. 80% LTV after 2 years, 90% LTV after 4 years. FHA is straight-up 3 years. FYI, VA is 2 years.
- Robert Lowery, "Bob Lowery"
- Contributions:2097
You should be okay? May I ask why you are answering a lender question if you don't know?
Kathy, short sales are treated like a foreclosures. Conventional guidelines require 4-7 years since the completion of the short sale. FHA typically requires three years. There is not waiting period on a FHA loan if there was no delinquency on your credit for the 12 months prior, so your scenario would not qualify.
Kathy, short sales are treated like a foreclosures. Conventional guidelines require 4-7 years since the completion of the short sale. FHA typically requires three years. There is not waiting period on a FHA loan if there was no delinquency on your credit for the 12 months prior, so your scenario would not qualify.
- Claudia Gerardino (Yo hablo su idioma), "Denver home for sale"
- Contributions:62
"Every Lender may have diferent guidelines, However, you should be fine, , Contact a local lender, few in my opinion wont hurt, I will recommend someone with a common sence INHOUSE UNDERWRITER. If your credit got affected and you been current on all your open accounts for the past 12 months you should be fine. I'm under the impretion that TO BUY a home after a Shortsale you have to wait at least two years,that may apply only for a purchase. good Luck!
- Aki Kladis, "cen21brokr72"
- Contributions:28
You should be OK, but always good to speak with your lender.
- Matt Laricy, "Matt Laricy"
- Contributions:1620
I would speak with a few different lenders. They would probably need more information that this. Let me know if you would like a referral.
Refinance after short sale
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