How long would it take to qualify for a new morgage after a

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I am looking at a short sale and wanted to know how long generally it is before i could purchase another property after rebuilding my credit? 2yrs? 7 yrs???? Help please?

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Kelly,

If you successfully complete a short sale, you may qualify for a new loan at a reasonable interest rate in as little as 18 months. So, if you plan to buy a home in the future, then doing a short sale is the better option.

kenstampe · Posted: Mon Aug 06, 2007 11:15 am Post subject:

Defaulting on a mortgage is considered foreclosure whether you do a short sale, deed in lieu, or just stop making payments until they kick you out of the place.

In other words, the credit impact is the same.

What's different is whether or not there are additional monies the lender can come after you to collect. In a short-sale, the lender can't sue you for the loss on the loan whereas they can in a normal foreclosure.

Depending on your situation you can qualify for some loans right out of foreclosure and other loans require 4 years. Not knowing enough about your income, employment and assets it is impossible for someone to answer that question.

I suppose the better question is how long until you can afford to make a mortgage payment without having to resort to a short sale to get out of it?

carnahandavid · Joined: 21 Dec 2006 Posts: 239 58.41 Dollars($)

You must be having financial problems because of which mortgage payments have become difficult and you are looking into short sale as an option.

Now after a short sale happens you will have improve your credit, financial position and only when you are sure that you would be able to afford house payments, look at buying the new house.

Developing good reserves, improving credit score, getting back financial stability generally takes time and you will have to wait for some years before you make the new purchase.

As Ken said, to get good rates, you need to wait for around 4 years, this time can be utilized to improve credit history, and regain financial stability. If you don't make proper calculations and go for another mortgage to soon, you might be in similar spot again where losing the home becomes a reality.

Guest 0.10 Dollars($)

ACCORDING TO YOUR REPLY ABOVE, AFTER SHORT SALE ONE CAN BUY A HOUSE AFTER 18 MONTHS..HOW ABOUT IF CREDIT SCORES WENT DOWN BECAUSE OF MORTGAGE DEFAULTS BEFORE SHORT SALE???
THANKS!!!

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.03 Dollars($)

It really depends on the damage to your credit report such as if forclosure was filed, late payments, etc. I would figure at least 2 years before being able to purchase again.

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