The Tale of Two Short Sellers in Woodbridge, VA


  Last week we closed the loan that inspired the aforementioned post. "Ms. M" short sold her home although she was never late on any payments. Her lender agreed to the sale due to an extenuating circumstance. After the sale, her desire was to continue to be a homeowner. Since, she met the criteria we were able to close on a FHA loan to purchase a home in Stafford, VA. One of the reasons this client was able purchase a home immediately after a short sale was the fact that her previous lender did not trash her credit. She continued to be rated as a M1 meaning mortgage account with no late payments. Part of the criteria to purchase a home immediately after short sale is to show no late payments in the last twelve months and be current at the time of sale.

  Seller #2 were able to successfully short sale their Woodbridge home, but unlike Ms. "M" they will be renters for at least the next two to three  years, due to the fact that the bank reported their short sale as M9 which is a chargeoff, basically the worst possible category.

Although the payment history on the credit report clearly listed showed no late payments for the durationof the account. Once the short sale closed,  the bank changed the account rating from M1 to M9- chargeoff account- dashing any hopes of buying another home immediately after a short sale.

                                                                          

  Each case had extenuating circumstances that convinced lenders to agree to take less, but the difference in becoming renters or homeowners is in the credit reporting of the mortgage M1 orM9. As more people execute short sales (although they have never been late on a payment) one of the keys to buying a home immediately after the sale will depend on the mortgage credit rating.
                                           

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2 Comments on You Can Buy Another Home Immediately After a Short Sale- The Tale of Two Short Sellers in Woodbridge, VA

AUG
20
2010
498,310 Points 150 Featured Posts Outside Blog Hit Router Called Shot Master

Markita:  Great info to have if you're a short-sale seller.  Guidance and info is so important during this process.  One can only hope that someone in this situation chooses the professionals they work with after great care and research has been involved.  Your post proves that it DOES make a huge difference in the aftermath and options available.


Gene
2:26pm • #1
AUG
31
2010
259,783 Points 1 Featured Post

Marika ~ Thanks so much for this post, I have friends in another state who may definitely benefit from this information.
7:42am • #2

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Markita Woods Queen of Mortgages FHA, VA, Conventional, USDA Loans

Woodbridge, VA

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WestStar Mortgage NLMS#196099

Address: 3350 Commission Ct, Woodbridge, VA, 22192

Office Phone: (703) 497-3936

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Timely and relevant information about obtaining a mortgage, credit scores, FHA, VA, and VHDA financing in Woodbridge, Stafford, and surronding areas.


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