People often ask how long after a short sale do I have to wait before I can buy another home? Our friend and mortgage kind of guy, Ron Hall, has the following informtion for you to consider.
The answer may be: You DON’T
That’s right according to Mortgagee Letter 09-52. It states the following:
Borrowers are considered eligible for a new FHA-insured mortgage if:
- they were current on their mortgage and other installment debts at the time of the short sale of their previously owned property, and
- the proceeds from the short sale serve as payment in full.
That being said there are some exceptions but they are reasonable:
Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to:
- Take advantage of declining market conditions, and
- Purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.
Borrowers who sold their property under FHA’s pre-foreclosure sale program are not eligible for a new FHA-insured mortgage from the date that FHA paid the claim associated with the pre-foreclosure sale.
Even if you do not meet the above criteria, for instance you stopped making payments. There are circumstances that you can take advantage of the short sale updates from FHA.
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