Haven't finished my short sale yet but I'm ready to be approved for a new home...

By
Mortgage and Lending with Veritas Funding, SLC, UT NMLS #231319

As part of my website, I offer an "Ask an Expert" tool to help folks with various questions.  Today I had this one.... "We currently have excellent credit FICO of close to 800. We will be relocating to Salt Lake City in a few months and need to sell our home in California. However, we will be selling our current home Short. I've read FHA guidelines and it states that if you are current on your mortgage at the time of a short sale you can immediately qualify for a new FHA loan. However, I've also read that no lenders are willing to step up to the plate so that "guideline" makes that senerio a fallacy. My husband's new job is in the same feild he has been working in for 10 years and other than the short sale we have perfect credit. Will we be able to get a mortgage to purchase a new home in Utah?" 

Well first the answer is NO - duh!  Second - and I'm not looking to judge anyone here, seriously, if you were the bank and a consumer who hasn't finished defaulting on their existing loan asked you for a new one - would you lend them money?  Especially shocking.. "no lenders are willing to step up to the plate"... are folks that far removed from their situation to even understand what they're asking for?  Your thoughts?

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Rainmaker
437,101
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

Once the short sale is completed, FHA does allow for a new purchase.  Of course, there can not be any mortgage lates prior to the short sale completion and the short sale must serve as payment in full. 

Sep 26, 2011 01:44 PM #1
Rainer
148,219
Gwynn Carpenter
Gwynn Teal Carpenter-Broker: Home and Hearth Realty (Austin) - Austin, TX
: Broker, Home & Hearth Realty (512)467-6191

Joe:  I'm with you, why take a chance that this person will honor their next mortgage?  So what was your answer to this lady??

Sep 26, 2011 01:52 PM #2
Rainer
116,756
Joe Libin
Veritas Funding, SLC, UT - Salt Lake City, UT
Veritas Funding NMLS #843779 & #252108

Gwynn - Thanks for your comments - my response was a polite "you are correct on both accounts - yes, FHA does allow it and yes, no lender is "willing to step up to the plate" - just amazed at the "victim" mentality!

Rodney - Thanks for your correct, factual comments however I think you missed the point of the post.

Sep 26, 2011 02:05 PM #3
Rainmaker
113,002
Randy DeLaMare
Realtypath LLC - Salt Lake City, UT
Helping friends Realize their Real Estate Dreams

Joe, it takes all kinds doesn't it. I guess we are all victims one way or another. Just not all nuts. Nice work sir.

Oct 16, 2011 05:25 PM #4
Rainer
116,756
Joe Libin
Veritas Funding, SLC, UT - Salt Lake City, UT
Veritas Funding NMLS #843779 & #252108

Randy,

This is the one that blew me away as well.  It's like shame on you for defaulting and shame on us if we're dumb enough to give you money again immediately afterwardwards!

Oct 17, 2011 03:20 AM #5
Rainer
154,570
James A. Browning
Browning Real Estate School/REO Institute - International, IT
MRE REOCertified(R) SSCertified

Thank you for sharing your blog; we need Real estate Professionals to share their comments and information regarding their markets and experiences. Thanks again from beautiful Colorado

Jun 08, 2012 01:38 AM #6
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Rainer
116,756

Joe Libin

Veritas Funding NMLS #843779 & #252108
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