Can I Buy a Home Immediately After Selling A Home By Short-Sale?
I Am Selling My Present Home By Short Sale And I Want To Buy Another Home As Soon As Possible
The Answer Is "Yes, But..."
We have sold a series of homes for clients by short sale, meaning that the sale price, less closing costs is not sufficient to pay-off the existing mortgage.
The sellers owe more than the house is worth right now.
Some folks struggle with selling via short sale vs letting the home go to foreclosure. Your credit report will be severely impacted for years to come if you let your home go to foreclosure, whereas a short sale typically does not impact your credit.
Can you buy a home IMMEDIATELY after selling a home by short sale?
Yes you can, but you have to meet some tight restrictions with respect to the house you're selling, and the home you want to buy after your short-sale.
- The loan on the home you are selling is not an FHA loan
- You must be making your payments "on-time", and you are not behind on your payments
- Your lender does not require you to pay back the deficiency between what you owe and the amount the lender gets after closing costs are deducted from the pay-off
- You are selling short due to circumstances beyond your control, AND those circumstances fit FHA guidelines
- Temporary job loss or loss of income
- Temporary disability or illness of borrower that caused loss of income or reduction of income
- Death of a wage earner, e.g. both spouses qualify to buy the home, then one dies, leaving just one wage earner
- "Other circumstances beyond borrower's control"
- You may buy a home with a Fannie Mae conventional loan, 20% down-payment, 2 years after your short-sale
- You may buy a home with an FHA 3.5% down-payment loan 3 years after your short sale
How can we help you today? Call 703-590-2252 or contact me now by email Click Here
Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252 to list your property for sale or to purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany, Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.Equal Housing Opportunity