How long after a short sale can I buy a home?

Guest 0.10 Dollars($)

With much remorse, I'm closing the short sale on my condo at the end of this month. I don't have to tell you how much of a hassle it has been.

I've heard and read a lot of conflicting information about the time line for purchasing another property. I know there are a lot of lenders on this site; what's the real scoop on how soon I can buy?

I need to get something I can afford as soon as possible; the mortgage interest is the only thing I can deduct, and I'll be taking a double-whammy tax-wise next year.

Thanks,

Sad

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Mathina.

Welcome to the forum.

You can buy a house just after the short sale but sadly the rates and terms will not be affordable or you should try and improve your credit as much as possible. If you can improve your credit quick enough then you should be able to buy a house within 18 months with affordable rates and terms.

Feel free to ask if you have any further questions.

Best of luck,
Larry

chrisburns · Posted: Mon Jul 07, 2008 6:31 am Post subject:

Did you go to 120 days late? If so it is considered a foreclosure by lenders and will require 3 years seasoning before you qualify for FHA or conventional financing again.

If you weren't 120 days late then you technically would qualify after 12 months without mortgage or rental lates.

Guest 0.10 Dollars($)

I have never heard of this. Eveyone has told me that a short sale is a short sale -- unless it goes to foreclosure. It this also true for California? I notice you are in Florida, Chris.

So my short sale will be recorded as a FORECLOSURE?

Guest 0.10 Dollars($)

Posted: Mon Jul 07, 2008 5:17 pm Post subject:

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I have never heard of this. Eveyone has told me that a short sale is a short sale -- unless it goes to foreclosure. It this also true for California? I notice you are in Florida, Chris.

So my short sale will be recorded as a FORECLOSURE?

cliff · Posted: Mon Jul 07, 2008 5:50 pm Post subject:

Hi mathina
We’ve helped several people with you situation and no a short sale is not viewed the same as a foreclosure. You will need a credit strategy layed out for you according to what is on you credit report. If you where to do this you could purchase another home at a fair rate with 18 months; however, if you do not do anything to restore your credit it could be several years before you are able to obtain reasonable financing.

Hope this helps.
Very Happy

Guest 0.10 Dollars($)

Yes, definitely Cliff. How should I go about developing the strategy? I've heard some of the credit repair services are bogus; should I contact your company directly? Would a local company be a better option?

Thank you

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi mathina.

Welcome back.

Short sale is not foreclosure. In case of short sale you are trying to pay off the lender by selling the property and also taking his permission. So it will not hurt your credit as much as foreclosure. To improve your credits just make all your payments and bills on time. That will help you to improve the credit score.

To know how can you improve your credit check out the credit repair tool at http://www.mortgagefit.com/calculators/credit-repair.html

Feel free to ask if you have any further questions

Best of luck.
Larry

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