When will I qualify for a mortgage after a short sale or foreclosure?

By
Real Estate Agent with Kelli Grant Group | Berkshire Hathaway AZDRE #SA562433000

When will I qualify for a mortgage after a short sale or foreclosure?

Many clients who have gone through a short sale or foreclosure after 2007 are now asking me the question, “When will I qualify for a mortgage?” Housing is once again affordable and people want to take advantage of rock bottom deals. Prices in Phoenix, Arizona are hovering around the bottom. You can see from this chart that there haven’t been any drastic plunges or spikes over the past 9-12 mths as shown in previous years. Now is the time to buy a house and become a homeowner once again.  Now is the time to relocate, invest in a winter home, buy a retirement home, and invest in rental properties and fix-n-flips.

Monthly Ave Sales Price Maricopa County July 2011 Cromford Report

Another reason people are asking if they qualify to purchase a home again is because the FHA loan limits are said to be dropping significantly October 1, 2011. That means the buying power in the 3.5% down payment price range is much lower. In Maricopa County Arizona, the loan limit is currently $346,250. As of October 1st, it will be $271,050. That’s a decrease of $75,200 in buying power! Learn more about FHA Loan Limits.

Others questioning, "When will I qualify for a mortgage?" are homeowners who elected to do a strategic default because the equity is so upside down. These homeowners are hundreds of thousands upside down in a property and are well aware that the value will never rebound in their lifetime to what they originally paid, so they cut their losses short. They are now looking to invest in properties. Interest rates are low, prices are at bottom and there are several opportunities to fix up a foreclosed house and flip it - or buy and hold it to take advantage of the booming rental market.

Finally, the answer to the question: When will I qualify for a mortgage after a short sale or foreclosure?

The Waiting Period to Qualify for a Home Mortgage after a Short Sale, Foreclosure or Bankruptcy

The Waiting Period to Qualify for a Home Mortgage after a Short Sale, Foreclosure or Bankruptcy

The Waiting Period to Qualify for a Home Mortgage after a Short Sale, Foreclosure or Bankruptcy

* JUMBO waiting periods vary by lender
* Waiting period time frames may be less in situations with extenuating circumstance
*For LTV’s greater than 80% ‐ mortgage insurance guidelines may differ

Kelli GrantCall Kelli Grant to set up your custom web portal of MLS listings that match the property criteria, location and price range you’re interested in researching.  You’ll receive notification emails up to once a day when there are price changes or new listings to see.  Call Mark Taylor for your free loan consultation about which loan programs best suit your needs.

Kelli Grant specializes in short sales, pre-foreclosure options such as the HAFAprogram, and strategic default options in the cities of Phoenix, Scottsdale, Cave Creek, Anthem, Glendale, and Peoria.  Kelli Grant is the neighborhood specialist for Sonoran Foothills and Tramonto.  If you need to speak to a reputable, reliable real estate attorney or CPA about the legal and tax consequences of a short sale or strategic default, contact Kelli Grant.

Kelli Grant Realty

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Kelli Grant is a CLHMS and Member of the Institute for Luxury Home Marketing

   resort and second-home property specialist

www.KelliGrantGroup.com | Real Estate Advisors helping you make decisions best for you.

 


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Topic:
Lending / Financial
Location:
Arizona Maricopa County Phoenix
Tags:
mortgage
short sale
waiting period
phoenix az short sale
when will i qualify for mortgage
sonoran foothills short sale
tramonto short sale

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Rainer
15,057
Jack Rockwell
The Rockwell Group at Keller Williams Realty - Jupiter, FL
"Know How Is Key"

Kelli, very informative information for the unfortunate victims of foreclosure and being upside-down.

Thanks for the post.

Jul 20, 2011 05:47 AM #1
Rainmaker
157,895
Christa Hobart
Cactus Valley Realty - San Tan Valley, AZ
Arizona Property Sellers

Kelli~Thank you for sharing this information.  This is a great post!

Jul 20, 2011 06:04 AM #2
Rainer
282,445
Jennifer Manchester
Suburban Properties of Charlotte, LLC - Mint Hill, NC
GRI, ePRO, ASP - Broker/Home Stager

This is great info Kelli.  I get asked that question alot too.  Great charts.

Jul 20, 2011 06:55 AM #3
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Rainmaker
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