After Short Sale, You Can Buy Again

By
Real Estate Broker/Owner with Broadpoint Properties Cal BRE #01324959

short sale waiting periodEveryone wants to know the answer to the following question: “Is it true that I can short sale my house and purchase again with no waiting period?” 

The answer is “yes” and “no” and “maybe.” 

According to the excellent chart that I’ve shared below (courtesy of my friends at American Capital Home Loans), if you are obtaining an FHA loan, there may be no waiting period for a borrower who participated in a short sale to buy again. However, that borrower would have to have completed the short sale with no late payments on any mortgages and no consumer debt within the 12-month period prior to the short sale. The borrower would also need to prove that s/he was not taking advantage of the declining market conditions. 

People are often curious about the waiting periods required to purchase again after significant derogatory credit events (such as short sale, foreclosure, and bankruptcy). Use this handy chart below in order to familiarize yourself with the latest and greatest information about all of the different loans and their waiting periods. And, if you have any questions, I’m sure that the folks at American Capital will be more than happy to take your call!

 

  Loan Waiting Periods  

(photo credit)

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Re-Blogged 5 times:

Re-Blogged By Re-Blogged At
  1. Eric Michael 03/22/2012 10:58 AM
  2. Gene Riemenschneider 03/22/2012 02:59 PM
  3. Katerina Gasset 03/23/2012 11:11 AM
  4. Jane Peters 03/23/2012 02:49 PM
  5. Barbara Altieri 03/27/2012 11:29 AM
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Ambassador
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Ellie McIntire
Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD
Luxury service in Howard County & Catonsville

It would be a perfect situation if this was the norm, I believe the updates on HAFA due out soon will also help. Good news if this could help many.

Mar 22, 2012 12:43 PM #11
Rainmaker
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Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

What percent of your short sales have someone with all the payments made?  Not a lot.  Most need to wait 2 years.

Mar 22, 2012 01:09 PM #12
Rainmaker
1,317,757
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

This questions come up frequently.. this is a great post to reference so folks can get answers to their questions.

Mar 22, 2012 01:28 PM #13
Ambassador
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Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Melissa - This is a subject that comes up again and again, and it's confusing, and this is great information.

Mar 22, 2012 03:00 PM #14
Rainer
113,913
David A. Weaver
Peoples Bank & Trust Co. - Scottsdale, AZ
24 years helping folks finance their dreams.

Excellent information, this should be shared with all sellers thinking about a short sale and paid attention too.  Also a conversation with a mortgage professional is not a bad idea as well.  Have a great day! 

Mar 22, 2012 04:49 PM #15
Rainmaker
244,734
Bonnie Vaughan
Scranton, PA
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin

Melissa  this is very helpful.  Bookmarked so I can keep it as a guide when folks ask questions.

Mar 22, 2012 09:22 PM #16
Rainer
406,511
Keith Lawrence
Christie's International - Mahwah, NJ
ABR, CDPE, SFR, 203K Specialist

Great blog:  I am all ready dealing with potential buyers that did a short sale on their previous home and looking to buy again.

Mar 22, 2012 09:31 PM #17
Rainmaker
1,598,714
Mike Cooper, GRI
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Melissa, that's a classic example because it really is one of the three depending on how the homeowner worked the process.  Good info!

Mar 22, 2012 09:59 PM #18
Rainmaker
574,081
Rob Spinosa
Guaranteed Rate, Marin County, CA - San Anselmo, CA
SVP of Mortgage Lending, Marin County

From what I have heard within the industry, it is possible to go under 2 years, but the stars do have to align and you do well to have an underwriter who is willing to look closely at the circumstances.  The hardliners tend to underwrite to 2 years, minimum.

And, of course, as loan originators, it is our job to package the loan file completely and support it with just the necessary documentation to make the case clear.  The longer it takes for an underwriter to figure out what's going on, the less likely the loan is to be approved.

Great post and great info.

Mar 22, 2012 10:58 PM #19
Rainmaker
623,224
Morgan Evans
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

I can see this information being very beneficial to a short sale seller who wants to figure out when they can buy again. 

Mar 22, 2012 11:02 PM #20
Rainmaker
1,402,727
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Melissa, very good information for answering this question. Bookmarked for reference. Thanks.

Mar 22, 2012 11:04 PM #21
Rainmaker
846,176
Barbara Altieri
Kinard Realty Group Fairfield and New Haven County CT Real Estate - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

Melissa -- There certainly is no standard answer as circumstances vary from sale to sale. The charts you provided are excellent covering every scenario and loan type. Thanks.

Mar 23, 2012 12:04 AM #22
Rainmaker
908,388
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Melissa, this is a question sellers want to know, when they can buy again, or how the short sale will affect their credit. Great chart and it would be a good idea to speak with a mortgage broker for their personal situation.

Mar 23, 2012 12:08 AM #23
Rainer
68,246
Georgia Elite Realty
Georgia Elite Realty - Kennesaw, GA

Great chart! Thank you for the information. That is a common question in our market.

Mar 23, 2012 02:39 AM #24
Rainmaker
1,177,946
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

This is always something people considering a short sale think about.  Thanks for posting this, Melissa.

Mar 23, 2012 02:47 PM #25
Rainmaker
1,816,979
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

Melissa, i am glad i printed this out..great share...I have many short sales where they have stayed current on their mortgage payments so this is very relevant information for my short sale sellers...good gold star too!!

Mar 23, 2012 09:20 PM #26
Rainer
270,066
Donna Derrick Ponte Vedra Beach, Jax Beach FL
Davidson Realty Inc - Ponte Vedra Beach, FL

This is great info - thanks for sharing!

Mar 23, 2012 10:32 PM #27
Rainer
20,777
Dominique Britton
GoHomeToAtlanta.com Realty LLC - 678.250.5022 - Buford, GA
Experience the Difference in Real Estate Services

Melissa, you've shared some great information that many buyers do not know. If more people knew about this, I'm sure they would jump on board right away.

Mar 24, 2012 02:37 AM #28
Rainer
368,527
Raymond Denton
Homesmart / Evergreen Realty - Irvine, CA
Veteran Friendly Realtor®

John and Carl did a nice job on creating those charts - they're very informative and one place answers a lot of questions.

Mar 24, 2012 03:59 AM #29
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Jeff Dowler, CRS
eXp Realty of California - Carlsbad, CA
The Southern California Relocation Dude

Melissa

Thanks for sharing this helpful information. There are lots of people asking...those who have short saled and those who may have too. You hear all sorts of rumors about what can and cannot be done and it's nice to have something organized like this.

Jeff

Mar 24, 2012 08:00 AM #30
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Melissa Zavala

Broker, Escondido Real Estate, San Diego County
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