short sales: 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 sales: Using a VA Insured Mortgage to Purchase a Home After a Short Sale
- 04/07/12 07:52 AM
I have had a lot of people ask me about how to buy a home after a short sale using FHA financing but it’s becoming more and more common that people are considering buying a home after a short sale using financing insured by the Veteran’s Administration. These guidelines use to be murky but the issues concerning waiting periods after a short sale and underwriting guidelines are coalescing around an interesting blend FHA guidelines and Fannie Mae guidelines. There are six unique stipulations and they are as follows: The borrower must have made all mortgage and installment payments within the month … (11 comments)
short sales: Add Your Signature to the Petition - Reforming Regulations Concerning Short Sales
- 10/26/11 01:59 PM
While 70 percent* of Americans see homeownership as part of achieving the American dream, the homeownership rate has taken a 10 year decline** that hasn’t been seen since the Great Depression. While some steps have been taken to assist underwater homeowners to refinance, *** A fast transition back into homeownership is good for the economy, consumer confidence, the housing market and indeed...the banks. Some actions can be taken that require no congressional approval. We, the signers of this petition, ask that the administration to work through the executive branch to implement the following: Have the FHFA change Fannie and Freddie's guidelines regarding … (9 comments)
short sales: Do I Need to be Late My Mortgage to Qualify for a Short Sale? - Don’t Take Yes for an Answer
- 10/07/11 06:10 AM
I have a lot of people call me to get pre-qualified to purchase a home using FHA financing after a short sale. Early on, not a lot of these scenarios panned out but these days, more and more of them do. When they don’t, the number one reason is because they took bad advice from a party to their short sale transaction. That advice? “Mr. and Mrs. Short Seller, you need to be late on your mortgage to qualify for a short sale.” This is often false and has devastating consequences. In many cases, proving imminent danger of default is all that … (2 comments)
short sales: Buying After a Short Sale is an Excellent Mortgage Credit Risk
- 08/07/11 04:33 PM
While lenders will admit that it’s technically possible to provide mortgages to homebuyers who recently had a short sale without a waiting period, most lenders are not offering this product. Because the complexities of the process involved with closing these loans creates perceived risk, most lenders elect not to do them and fail to ask the more important question. . . “Are they a good credit risk?” The principals of underwriting mortgages and loans in general are outlined in the Four C’s (Credit, Collateral, Character and Capacity). By these measurements, borrowers who comply with the provisions of FHA’s Mortgagee Letter 09-52 … (18 comments)
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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.
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