Foreclosure/Short Sale Ramifications

By
Mortgage and Lending with Your IRA guy!

Wow,

We just received word that if you have a foreclosure, instead of having to wait 3 years to buy again with a "conforming" loan, it will now be a 5 year wait.  Bankruptcy is still 2 but if you put the house in, it's still 5.

Also, for those selling on a short sale-or thinking about doing one, this is classified the same in the lender world as a foreclosure, Of course, it will depend greatly on how the current lender reports to the bureaus (i.e. how many questions arise in the underwriting of the new loan).

Just an update.......more guideline changes are continuing to roll out for everyone-we're not out of the woods just yet.

BTW, Credit is the most important factor when buying a house...make sure you check yours regularly and, be proactive in fixing errors.  It's not hard to do.... you just have to make sure you do it-it can take time so, before you start looking for a place, make sure your credit is reporting correctly (just some advice)!

Michael

 

Comments (2)

Erik Elsea
Erik Elsea-Jones & Co. Realty - Fort Myers, FL

Michael, this is very good advice. Especially as banks tighten up the lending guidelines.

Jun 04, 2008 03:26 AM
Hope Goss
Ventura Property Shoppe - Ventura, CA
Ventura Real Estate

Wow, 5 years - that's a long, long time.  I think there are folks who found themselves in a very bad situation, and given the chance, wouldn't make the same mistake again.

Jun 04, 2008 03:30 AM