Buying a Home after a Short Sale or Foreclosure, Lake Elmo MN - Durham Executive Group

Real Estate Agent with Durham Executive Group - RE/MAX/Results

Buying a Home after a Short Sale or Foreclosure, Lake Elmo MN - Durham Executive Group


Buying a Home after a Short Sale or Foreclosure 


 We know a home foreclosure can be a traumatic experience and leave many wonderful families with the feeling they have no chance of owning a home again. This does not have to be the case. The economy has taken its toll on many and losing a home is something most people never planned on.  Many times the reason for the short sale or foreclosure was something that could not be predicted or prevented.  Even after a short sale or foreclosure there is no reason to let this prevent you from starting over and achieving the "American Dream" of home ownership.

It was with this thought that the topic of Lake Elmo, MN home owners who lost their home due to a short sale or foreclosure in 2007-2010 would again be eligible to purchase another home.  After experiencing such difficult financial times and emotional heartache we decided to write an article specifically for these families focusing on exactly what they would need to do in order to purchase another home in Lake Elmo MN; particularly when interest rates are still at historical low levels coupled with home prices continuing to depreciate. This financial climate and housing market provide a wonderful opportunity for these same families to recoup financial equity and the pride of home ownership.

Subsequently, we reached out and contacted a local and well respected mortgage loan officer, Dave Wahrenbrock with WJ Bradley Mortgage Capital Corp, who specializes in helping families who have lost their homes to financially get back on their feet in order to qualify for another mortgage.

Here is what Dave had to say for those families who want to purchase another home shortly after they lost their previous home to either a short sale or foreclosure.

"The most important task is to start to plan. The likely hood of getting a new mortgage right after a foreclosure is not probable, but it might not be as long as you might think. We can only look at current guidelines, since programs and guidelines can change, but FHA insured loans and USDA loans can be as little as three years from a foreclosure. Even less, if it is a short sale and you have no 60 day late payments prior to the short sale. If you did not have any late mortgage payments prior to the short sale, you could potentially qualify for a new purchase as little as two years.

There are also other factors that could put you in the market sooner than you think. Fannie Mae recognizes that there are occasionally extenuating circumstances that would cause a foreclosure.

What is Documented Extenuating Circumstances?

Fannie Mae allows for extenuating circumstances such as:

•·         Death (not yours, of course)

•·         Illness

•·         Job Transfer

•·         Accident Resulting in Severe Injury

These are circumstances they will take into consideration to determine if you are eligible to purchase a home less than three years from the foreclosure.

In all cases, it is important to re-establish your credit. This is very important. There are many ways to do this, but the most important factor is to make sure all of your bills and payments are made on time. If you have late payments after a foreclosure, this will make it more difficult.  Setting up your payments on automatic payments is a great start. Speak with your bank about a ready reserve or sweep account to make sure your account is not over drawn. Building credit is the key to getting your FICO score back up and showing that you are financially responsible. If you wait three years to start, you will have missed the opportunity to re-build your credit. Every borrower has their own unique set of circumstances. The first step is to sit down with a qualified loan officer who can help determine what you will need to do to get in position for a new loan in the future. Planning is the key.  Take the time to sit down with a loan officer and review the past, and plan for the future. Home ownership can be obtained once again, and with the right plan, sooner than you may think!"

We want to thank Dave for sharing this information and we hope those of you who are looking to re-establish your credit and buy another home quickly due in part to the historic low home affordability index that you contact John and Dave to schedule a meeting to further discuss your next step to home ownership.


Posted by

John and Becky are real estate agents with backgrounds and work experiences that set us apart from our competition. We are both educated with post graduate degrees and have worked in upper bracket professional management positions in both business and educational settings prior to real estate. We know how to work with all social and economic clientele - whether it's a first time buyer, or a multi-million dollar client. We put the emphasis on ‘EXECUTIVE LEVEL' service regardless of the size of the transaction.

Our mission statement embodies putting the client first. We recognize the importance of listening to, and fully understanding our clients' needs and concerns. Each of us brings a unique set of marketable skills with none more important than integrity and honesty. We give our word that there will never be a transaction we are involved with that is not handled with professionalism, honesty, and integrity. Additionally, we pride ourselves on our communication skills and the ability to market and negotiate our client's properties with superior results. In fact, our efforts were recently recognized with an award for our client marketing. This is a prestigious award only a few agents in the Twin Cities receive from the National Association of Realtors and


John and Becky Durham

REMAX Results

604 Bielenberg Drive

Suite 100

Woodbury, MN  55125

Voice (651)231-2191

Fax (651)735-8246 (Search All Properties Currently for Sale in Twin Cities, Greater Minnesota, and Western Wisconsin via our MLS - Enabled Search Engine)

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Durham Executive Group



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Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Great article. I did not know about the Extenuating Circumstances. Thanks for sharing.

Jun 11, 2011 05:54 AM #1
Don Sabinske
Don Sabinske, Sabinske & Associates Inc. - Zimmerman, MN
Sabinske & Associates Inc.

Its a little difficult to read all of your post, but the gist of it is great!

May 06, 2014 08:57 AM #2
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