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You Can Buy 1 Month after a Short Sale

By Larry Bettag

Mortgage and Lending with Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 NMLS ID# 158606

September 08, 2012 01:20 PM

Yes....it's true....you can. There are a few basic requirements:

The new home has to be with an FHA mortgage;
The current mortgage cannot have a late payment on it over the last 12 months;
The current mortgage company cannot report a deficiency on the mortgage; and
If the current loan is FHA, then there can be no FHA claim against the current loan

I have done about 12 of these over the last 12 months. Most people aren't aware that this exists. What makes this so great is that if you, as a realtor, have a listing on a home that the borrower wants to sell short, then you may want to tell them to pay attention to the aformentioned! It's huge! I have 4 of them going on this very moment!!!!

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Andrea Bedard

Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD

Fluent in Real Estate & German, M.A. ABR ASP CIPS

Hi Larry, thanks for sharing this info! No, I had no idea.. this is huge! Especially for relocation clients who only had to sell because of a job transfer or PCS orders for military, always paid on time and maintained a good credit on top of that.

Sep 08, 2012 01:36 PM

Teral McDowell

Referral Patners LLC - Murphy, TX

Great information for the homeowners under water with good credt and payment history; thanks Larry.

Sep 08, 2012 02:53 PM

Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366

Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA

General Contractor, Dry Rot and Water Damage

I had no idea that this was possible. I know a few people that may be interested in knowing this Larry.

Sep 08, 2012 05:47 PM

Joe Petrowsky

Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT

Your Mortgage Consultant for Life

It amazing to hear that you have done as many of these loans as you have. Great job with the post!

Sep 08, 2012 07:08 PM

Gita Bantwal

RE/MAX Centre Realtors - Warwick, PA

REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thanks for the information. I will share it with others.

Sep 08, 2012 09:29 PM

Paul McFadden

Responsive Pest Control - Seattle, WA

Pest Control, Seattle, WA.

Larry: Thanks. I thought FHA had a 3 year wait for a borrower if they had a short sale on their record. This is a loophole, correct?

Sep 10, 2012 03:27 AM

You Can Buy 1 Month after a Short Sale

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