Profile picture for user3886563

mortgage after short sale

My friends had to have a short sale for their house.  unfortunately, it took over 2 years for an offer to be accepted by the bank given new zoning laws in their original neighbourhood.  Their house used to be a duplex.  they coverted it into a single family home.  when the short sale began, there were many offers that wanted to put the house back to a duplex, but these were refused.  The zoning laws were revised to not allow any more conversions, because there were too many section 8 houses in the area.  They finally have an offer that will close this March.  However, my husband and I wanted to gift a down payment to our friends to allow them to purchase.  They have been renting.  Will they be able to obtain a mortgage even though their short sale will now only close 2.2 years after placing it up for a short sale?
  • March 04 2013 - Bellevue
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Answers (3)

Profile picture for wetdawgs
The date of the short sale is consider the date the sale closes, not the date the house went on the market.   Therefore, their short sale date will be this month.

They should review all their financial details with a lender.   Some of the things the lender will want to know are whether or not they were late on payments, as well as debts, credit scores etc.
  • March 04 2013
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There are owners who have had a foreclosure or short sale years ago who just got approved to buy a new home. Nowadays, many lenders have flexible loan programs that you can take advantage of. Visit an expert in your area to see if  you qualify. You can also search online.
  • August 17 2013
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Profile picture for edboner
A lender/friend indicated 2 years after was common, but time can vary to a longer period with some lenders.  That said, it may depend on whether both parties were on the loan. 

Other options....cosign, option, delayed closing with rent option/purchase?

You would start by meeting with a local lender to discuss qualification if your friends go the loan route.
  • August 17 2013
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