Profile picture for kwessberg

how does a short sale or deed in lieu of foreclosure affect my ability to get another home?

I am recently divorced and need to move into less expensive home.  however, mortgage is more than home it worth, so can't sell it.  But I want to avoid foreclosure and still want to be able to purchase another home.  how do I do this?
  • February 20 2010 - Round Lake
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Answers (4)

I deal with so many sellers that feel that the only option is to foreclose which is not true. Foreclosing on your home impacts your credit for about 7 years. Depending on your situation, you many be eligible for a short sale. A short sale effects your credit for about 2-3 years, where there after, you will be able to qualify for a FHA loan. Much of this depends on your current credit situation also. If you have great credit, you may even be able to qualify for a mortgage in 1 year after the sale of your home and the deliquencies are over 1 year prior. I was a resident in Round Lake so I know that the area has incurred a tremdous decrease in values. Since you recently were divorced, it is a fair ground for a short sale. You have options, you just need the right person in your corner to help you thru the process. Feel free to contact me if you have any questions.
  • March 14 2010
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Profile picture for egelandgroup
Kwessberg,

To do a short sale or deed in lieu of foreclosure there has to be some form of hardship....the banks are not simply allowing people to walk away if they owe more than the home is worth.

If you are having difficulty & cannot afford the home any longer, then you may qualify for a short sale. Click here for more information on short sales.

If a short sale is ultimately the route you go, you will most likely be renting for the next 2-3yrs as you will have difficulty getting a loan immediately after a short sale, but you can take that time to get your finances & credit in order.
  • March 03 2010
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They all probably kill your chances to buy another home for the near future, but you should speak with a few lenders. My web site has a few names. If you can buy another property before you become delinquent then you can do it, but the current house debt might be too much for you to qualify for what you want. Again, check with a few lenders.

Philip Sencer

Chicago Realty Associates
1024 W Fry #101
  • March 01 2010
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They all probably kill your chances to buy another home for the near future, but you should speak with a few lenders. My web site has a few names. If you can buy another property before you become delinquent then you can do it, but the current house debt might be too much for you to qualify for what you want. Again, check with a few lenders.

Philip Sencer

Chicago Realty Associates
1024 W Fry #101
[content removed by moderator]
  • February 20 2010
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