Mortgage After A Short Sale
Currently there are two loan programs that allow to get a mortgage after a short sale almost imediately; VA and USDA. You have to be active military or a veteran to qualify for VA Loan so a USDA Loan is the only option for most people.
When can you get a USDA Loan after a short sale? Right away however there are several factors that need to be considered. The first is whether there were late payments on the mortgage prior to the short sale.
Mortgage After A Short Sale (No Late Mortgage Payments)
This may seem like an oxymoron as most people are told that a bank will not even consider you for a short sale until you are three months behind on your mortgage. In order to short sale your house without late payments you have to have a reason that the bank will accept. Each bank has their own rules and guidelines regarding the circumstances of allowing a short sale.
Some common scenarios for a short sale without late payments would be relocating due to a job or military. Another scenario is anticipated loss of income.
Mortgage After A Short Sale (With Late Mortgage Payments)
If you made late payments on your mortgage prior to a short sale you have to wait until you only have one within the past 12 months. As an example if you had 6 late payments leading up to the sale in December 2010 you have to wait until December 2011 before you get obtain another mortgage. Different lenders may have different guidelines regarding late mortgage payments. Read more about USDA Guidelines.
Mortgage After A Short Sale (What Next?)
There are several best practices that will put you in the best position for a mortgage after a short sale.
- The firs thing you should do after going through a short sale of your home is to contact a mortgage lender and ask them what programs are available after a short sale, when you can qualify for each one and what you need to do to qualify for each.
- The next thing you need to do is find out what your credit score is and how the recent actions have effected your credit situation. I recommend Equifax Scorewatch that uses a FICO score. There are lots of websites and even some credit bureau websites that do not provide a FICO score and is not considered accurate when determining the score used my a mortgage company. Monitor your score and your credit report monthly making sure everything is accurate. This gives you time to get your score up and make sure your credit file is accurate.
- The last thing you should is stay current on regulations and mortgage products. Regulations, laws and mortgage guidelines are changing at a breakneck pace. Some programs are only available for a short period of time. There is a lot of misinformation on the internet (goes without saying) but there is also lots of helpful information (like the article) you are reading! Find a few reliable sources and check in every few months to stay current on anything that could help you get back into a home faster.
If you would like to discuss your situation talk is still FREE. Dont rely on hearsay to make life changing choices for your family, call a professional. If you want to learn more about a mortgage after a short sale, call me 443-624-9398