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

By
Mortgage and Lending with Fairway Independent Mortgage NMLS #196099

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.
                                      
     
close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Lending / Financial
Location:
Virginia Prince William County Woodbridge
Groups:
Military Relocations
Tags:
woodbridge short sales
buy a home after short sale
woodbridge bank owned

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,229,211
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

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

Aug 20, 2010 07:26 AM #1
Rainmaker
1,523,605
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Marika ~ Thanks so much for this post, I have friends in another state who may definitely benefit from this information.

Aug 31, 2010 12:42 AM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
144,754

Markita Woods NMLS#196099

Queen of Mortgages - FHA, VA, Conventional, USDA
Ask me a question
*
*
*
*
Spam prevention

Additional Information