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Profile picture for user7468857

We want to buy another house after a short sale.How can we get it financed right away.

We are retired and our income decreased from the high 6 figures down to 60000. We have always paid our mortgages and all other debts on time. In 30 years never a late payment. We only owe a small car payment and one other loan. We are going from a $280000 home down to $150000-$160000.What should be our first step?
  • September 19 2012 - Woodstock
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Answers (11)

Profile picture for user7468857
Gordon, You apparently have not dealt with FHA very often. We are catagorized extenuating circumstances and are eligible for the FHA loan. This comes directly from the FHA.
Thanks for your feedback.
  • September 20 2012
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Profile picture for CallTheSisters
It's great to get referrals from friends.  Whether or not the lenders they know can come through is another question.  The waiting period is not set by the bank it is a federal requirement from my understanding.

The only other source of funds which you can seek without huge interest rates would be from a bank which does not sell their loans on the secondary market.  usually those are small local or regional banks who "hold" their own paper.  They underwrite in house and can often waive requirements under special circumstances.
  • September 20 2012
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Your two referral friends are mistaken, you cannot do an FHA right away. Two Years.
  • September 20 2012
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Profile picture for user7468857
Thanks so much for this feedback. I have discussed this situation with 2 referrals from my friends and to my amazement We will qualify for an FHA guaranteed loan right away. It is just choosing the lender to go with. There is definately hope for us who pay our bills on time and do the right things.
  • September 20 2012
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The reality is unless you did not miss a payment for 12 months prior to the short sale you will have to wait a minimum of 3 years to do an FHA loan from the date the loan was paid off.

Only other route is try a Hard Money lender, but your rate will be really high and your down payment will likely be 30%.

Justin Herring
[contact information removed by Zillow moderator]
  • September 20 2012
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Profile picture for Dunes ..
I agree completely with Cindy...and audtreasures
Thumbs up

Best of luck with finding information for and answers to your situation

  • September 19 2012
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User7468857, the reality is that it may simply take time, so your first step should be to find an affordable rental and make sure you continue to pay all other debt in a timely manner. My only knowledge of the mortgage industry is my direct exposure, a few classes, and everything I can read. However, I have read in several places that if you never had a late payment and have extenuating circumstances (like being forced into retirement), you will be able to purchase sooner than others, some as soon as right away (despite what some may say). To get any legitimate answers, you will have to find a lender willing to work with you, who can give specific direction. I am including some links to articles on the subject, starting with HUD's letter on the subject:
HUD pfd
E-How article
Mortgage Limbo
Buying after a short sale


Tim, while I understand that there are those who have taken advantage of the mortgage/housing industry and simply walked away when they were able to pay, there is not enough information in this tiny post to decide if these people are at fault. I certainly hope you were not one of those agents who was selling overpriced homes, with time bomb mortgages, and promising that houses always increase in value. Regardless, I don't think the level of vitriol is warranted. The person asked for an answer to a question, not a lecture and insults. You may want to read the GNP.
  • September 19 2012
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You need to start by having a credit report done to see if you would qualify for another mortgage. Start writing a good explanation letter as to why the short sell happened. Good Luck.
  • September 19 2012
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Profile picture for wetdawgs

You could consider a private money lender if you are willing to put down perhaps 30% and pay considerably higher interest rates.   Seller financing or lease purchase are also possibilities (although are very rare).

IF you kept payments current until closing, there may be other options.


  • September 19 2012
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Profile picture for audtreasures
easy there now,  :)
  • September 19 2012
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[inappropriate.  Please see our Good Neighbor Policy for posting guidelines]

Tim
  • September 19 2012
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