An interesting tidbit for you. Right now short sales are huge. I received a call from a RE/MAX Realtor downtown today offering me the following situation. I thought you could learn from it and educate your realtors.
Question: I have clients who are selling their house in a short sale. They have perfect credit and have never missed a payment, but they are selling short. After they sell short, they want to buy a new home. In fact, they want to put a contract on a new home tomorrow. My local lender says it can't be done. Can it?
Answer: While it's weird that you're short selling your current home and then buying a new home, it can be done.... Under certain circumstances. The current loan on the house that's being sold short cannot be an FHA loan. FHA can do the next mortgage so long as the home is being sold without a deficiency and that there are no lates on their current mortgage. The borrower cannot obtain a new conventional loan because Fannie Mae and Freddie Mac treat the short sale as if it were a foreclosure.
I picked up a new deal because it was this scenario exactly. Secondly, and most importantly, the realtor is writing a contract with a client whom their current lender said was not worthy for a loan.
Hope this is educational for you!
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