Homeowners who have gone through a short sale or participated in a deed-in-lieu arrangement with their lenders may, beginning July 1, 2010,  qualify  for new mortgages under Fannie Mae programs in as little as two years from the recording  of the short sale or deed-in-lieu arrangement. The current penalty period before recovery of credit is four years.

In order to qualify for the new loan after the two-year penalty period, the homeowner must:

  • save a down payment of at least 20% towards their new home; and
  • reestablish a good credit score under Fannie Mae's credit scoring system, which takes into account Fair Isaac Company (FICO) credit scores.

In special circumstances, a homeowner may be able to qualify for a new loan after the two-year penalty period without a full 20% down payment if they can prove that their short sale or deed-in-lieu was due to a special circumstance such as:

  • job loss;
  • divorce; or
  • medical expenses.

However, as Fannie Mae is requiring homeowners seeking this shortened two-year penalty period to reestablish their good credit under a FICO-based scoring system, non-traditional credit - credit history which is not reported in FICO scores, such as rental, utility or cellphone bill payments - will be ignored, cutting out a significant portion of the good financial behavior most homeowners established after the financial trauma of a short sale or deed-in-lieu.

 

2010 Tax Credit for New Home / First-Time Buyer
04/07/2010
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I have had a ton of clients and friends ask me for information on the new California Homebuyer Tax Credit. The information below is directly from the State of California website, which I hope clarifies the credit for everyone. If you have any… more
Awesome Moreno Valley Ranch-Style Pool Home
11/07/2009
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I just listed a great home located at 11565 Steeplechase in Moreno Valley, CA. The home is in the middle of being renovated, but should be completed by the end of next week. Amazing pool with 40 foot custom built slide and 15 foot waterfall. Views… more
Are Appraisers Limiting Your Market?
06/25/2009
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Wow, we are in an exciting market now. My office is located in Temecula, CA near wine country and we are having tremendous sales volume, however we have one major problem. The problems are not the buyers or sellers or even the lenders… the problem… more
Hemet/San Jacinto Builder Blowout
04/28/2008
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I currently have two homes listed in San Jacinto, California for local builder - CNH Homes. These homes have never been lived in and are 2700+ sf and 3000+ sf on 8000+ sf lots. We just dropped the prices to $269, 990 and $279, 990 and you still gets… more
Current Real Estate Market
02/07/2008
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Being the owner of Century 21 Preferred, I talk to my agents on a daily basis. In our recent meetings everyone is saying the same thing, "The market is starting to take an upward swing. " The phone is ringing 5 times more than this time last… more
 
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James Brennan Temecula Realtor Temecula Real Estate Temecula Home Value

Temecula, CA

More about me…

Pacific Coast Realty Group, Inc

Address: 27450 Ynez Road, Temecula, CA, 92591

Office Phone: (951) 695-9555

Cell Phone: (951) 514-0003

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