Can I Buy a Home Immediately After Selling A Home By Short-Sale?

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Real Estate Agent with Cell: 703-677-1120

short sale help in woodbridge erick blackwelderCan 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.

short sale vs foreclosureSome 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

The last requirement must include one of the following extenuating circumstances:
  • 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"
The last bullet point is a big cloud that opens the door to circumstances unique to a particular industry or location.

If you do not qualify to buy immediately after a short-sale, you will eventually qualify to own a home again.

  • 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 

Now remember, all of the guidelines above are in effect as of the date of this post, June 23, 2010.  The guidelines are subject to change at the whim of Congress, or HUD, or Fannie/Freddie.  Your mileage may vary according to how you drive.  Void where prohibited by law.  See the back of the box for a list of ingredients.

What's the point

The point is, check with your lender early and often throughout the short-sale process.

If you want to talk with my source, Markita, you can call her at 703-497-3936 at Weststar Mortgage.

How can we help you today? Call 703-590-2252 or contact me now by email Click Here 

Erick Blackwelder -Woodbridge VA 22192Peggy James Lake Ridge VA 22192

Erick and Company-Top Realtors Woodbridge VA

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
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Erick BlackwelderCall or text Erick Blackwelder right now for help finding a home, or help selling your house.  

Don't worry... Erick doesn't bite, and you won't get a sales pitch.  Text or call Erick now at 703-677-1120 for a FREE consultation.

CLICK HERE NOW to search the Multiple Listing Service (MLS) for homes for sale in and around Woodbridge, Lorton, and Mount Vernon.

Exit Realty Associates
8998C Lorton Station Blvd
Lorton, VA  22079
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Click the link above to email a question to me or call me now at 703-677-1120.  

 

 

Equal Housing opportunity.

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Rainer
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Randy Ostrander
Lake and Lodge Realty LLC - Big Rapids, MI
Real Estate Broker, Serving Big Rapids and West Central MI

Interesting tid bits on the short sale process. I would have thought selling short would ding your credit no matter the circumstance. Thanks for posting.

Jun 24, 2010 06:35 AM #1
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Rainmaker
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Erick Blackwelder

Text or call Erick now at 703-677-1120.
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