Short Sale Facts as They Pertain to Mortgages
September 16, 2010
You’ve probably heard a lot about short sales lately but we wanted to share some interesting facts with you about qualifying for a new mortgage if you have done a short sale.
A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan. The Bank has to agree to settle for less than the amount owed but this option allows a seller to avoid foreclosure.
What many people may not know is that it is possible to buy another home once you have done a short sale. If your short sale is due to relocating perhaps in the event of a job change there is no waiting period to qualify for a new FHA loan. If you intend to stay in the same area you can qualify for a new FHA loan 12 months after your short sale. This is providing that you did not have an FHA or VA loan on the property that you sold through short sale.
There are other options too with VA and conventional loans. Each situation is somewhat unique so we would be happy to discuss your individual situation with you if you have questions. Call Mike today at 520.954.7686.
