short sale: FHA's 1 Year Waiting Period After Short Sale Bankruptcy or Foreclosure - 08/17/13 09:02 AM
Where was this three years ago? Better late than never I suppose. FHA is now insuring loans to homebuyers who have experienced an Economic Event (Short Sale, Bankruptcy, Deed in Lieu of Foreclosure or Foreclosure) in the past and can document that (1) their certain credit impairments were the result of a Loss of Employment or a significant loss of Household Income beyond the borrower’s control, (2) the homebuyer has demonstrated full Recovery from the event and, (3) the homebuyer has completed housing counseling.
FYI, in the event of a short sale, this is for buyers who DID have late mortgage … (35 comments)

short sale: Tell a Veteran to Miss a Payment to Qualify for a Short Sale and You May be Up Against the CFPB - 05/05/13 03:12 AM
Statistically, over half of the Consumer Finance Protection Bureau (CFPB) complaints to the Office of Servicemember Affairs (OSA) have to do with mortgages.  Of these, 58 percent of them had to do with loan modification, mortgage collection practices or foreclosure . . . and yes . . . short sales would fall under this category.  While this is a broad range of complaints, I’d like to focus on servicemembers with Permanent Change of Station (PCS) orders and how they relate to short sales.
For Realtors processing short sales on behalf of servicemembers, they’ll want to know that the CFPB is particularly … (15 comments)

short sale: What are “extenuating circumstances”? - 03/23/11 02:50 PM
Many people trying to buy a home after a short sale find it difficult to navigate through loan programs that they may be eligible for and various waiting periods that may be applicable. If late payments occur, most people are told that the waiting period for buying a home after a short sale is 3 years because that’s what FHA requires if late payments occur. Then they learn that that Fannie Mae will back a loan for someone after a short sale after 2 years with a 10 percent down payment if there are “extenuating circumstances.” But what are extenuating circumstances? … (7 comments)

short sale: C’Mon Minnesota Legislature, . . Just Ban Deficiency Judgments - 11/27/10 11:12 AM
In some regards, the MN legislature was ahead of the curve on the mortgage and housing crisis. They regulated non-bank lenders and brokers in ways that other states hadn't even considered. They got ahead of abusive practices towards distressed homeowners and shady loan modification companies. What they have unequivocally failed at is aiding homeowners who are upside down on their homes. Their greatest impact could be with those contemplating a short sale.
Other states have already taken steps. Perhaps the best example would be those taken in California. For some time now, CA has not allowed deficiency judgments in the case … (6 comments)

short sale: What Does SB931 Mean to Your Seller? . . . It Means That They're a FHA Buyer! - 11/27/10 08:27 AM
 
California has taken a clever step towards opening doors for homeownership.  A primary intention of this bill no doubt was to flush the market of negative equity and aid struggling homeowners.  It has an added benefit of streamlining continued homeownership for those who will do a short sale after January 1, 2011 by making a difficult FHA loan approval that much easier to get done.
                Buying a home after a short sale has been possible through FHA for some time now.  While many investors are willing to purchase and securitize these loans, few have been originated because there are two … (18 comments)

short sale: Buying a Home after a Short Sale - Don't Believe the Naysayers - 05/29/10 08:02 PM
I've written on this subject before but I want to be more thorough this time.  There have been too many articles put out lately that discourage people from contemplating a home purchase after doing a short sale.  These articles express cynicism about home sellers' financial habits and Realtors alike.  Most Realtors doing short sales know how to cover the bases for their client to make sure they're in a good position to buy a home down the road.  Further, in my area (Saint Paul, MN), nearly 39% of homeowners are upside down on their home.  Only a minority of these homeowners … (8 comments)

short sale: Upside Down on Your Home? – Here’s Your Playbook - 04/03/10 07:35 PM
In my home state of Minnesota, Minneapolis and Saint Paul have nearly 39 percent of homeowners under water.   I've had the question, "I'm upside down on my home, what are my options?" so many times that I wanted to prepare a menu of options for people to reference.  This article briefly outlines 9 potential solutions that may serve you well.  The target audience here is not necessarily someone who's in default on their loan but simply one who owes more than the home is worth.
All too often, when one is upside down on their home and/or struggling with their mortgage, … (53 comments)

short sale: Short Sales DO NOT Require a Delinquent Mortgage – “Imminent Danger of Default” - 01/07/10 08:15 PM
Clearly, many if not most short sales involve a loan presently in default. As well, many times a short sale might involve a current borrower who can currently afford the payment. In several other situations, a seller may be “just hanging on” and the smallest thing could put them irreparably behind on their loan. Welcome to “eminent danger of default.”
In a hardship letter for a short sale (also known as short payoff), if a borrower/seller is currently not in default but can justifiably make the case that it is nearly unavoidable despite their willingness if circumstances were otherwise, they can … (49 comments)