Comments on: The Truth About Getting a New Mortgage after a Short Sale

By: Ken Mascia

Ken Mascia — Tue, 07 Feb 2012 15:19:45 +0000

Tina,
With a shortsale in June 2011 it’s going to be very difficult for you to get a new mortgage of any type. You should make sure you can obtain end financing prior to building the house. Check with lenders in your area or the folks who can give you the construction loan.

By: Ken Mascia

Ken Mascia — Tue, 07 Feb 2012 15:17:47 +0000

Lisa,
If either mortgage has both you and your husband on it then any shortsale or foreclosure will affect you both. Whether it’s in your maiden name or married name does not matter as it will still show up on your credit report.

By: Tina

Tina — Mon, 06 Feb 2012 06:23:35 +0000

We closed on a short sale in June 2011. The short sale was approved (after meeting the required delinqincy and submitting a letter of hardship to the bank for our reason needing to sell our home) We needed to relocate and fast. We knew selling during this down turn in the housing market meant our home would sell for far less than what we owed…..even though we had paid 100K down when we purchsed it 5 years prior. This decision to sell was not easy. We had NEVER been late on ANY credit loans, mortgage or Rents prior to the required delinquency payments needed to get qualify for this short sale. We oth had credit scores in the 800′s. Within thirty days of our home being listed we had an offer. Had the bank not taken 60 days to decide and accepted the ALL cash offer right away, we would have only had one delinquent/missed payment in all. The fact that all of our other financial obligations were maintained during this time supports our reason for short sale was not due to financial hardship. We recently purchased some land and had no problem getting the loan for that. Now we are looking to build our home. My understanding is that we can qualify for a construction loan however once construction is complete (6-7 months) we will need to have the land and construction loan rolled into one mortgage loan. The area is rural and USDA loans are common here. Are USDA loans using the same guidelines as FHA and conventional? Do you have any reccomendations for lenders who handle these loans? We both still have great-excellent credit, 745-760 and income is not an issue plus we have the savings for down payment if needed. (20%) How can we secure the mortgage prior to building, it would be horrible to get the home finished and have NO lenders willing to finance the new mortgage.
H E L P!

By: Lisa

Lisa — Mon, 06 Feb 2012 01:58:57 +0000

Ken
I am listed on our first mortgage under my maiden name was single at the time I purchased the house. Later we did a 2nd mortgage under both our name I can’t remember if we were married at the time. I am now a stay at home mom. We are underwater on our mortgage like so many of us. We were thinking of maybe trying in refinance under the HARP program to maybe get lower payment and maybe see if we could rent our home and purchase another or short sale our home. We contacted another place they recommended that we file bankruptcy because of our income, mortgage being underwater, no savings, and other debt. I don’t want to go the bankruptcy route. I am wondering could I file for a short sale/or bankruptcy seeing how my name is only on the first mortgage, and then could my husband apply for a mortgage loan for us to get a new house. Would the short sale, foreclosure, or bankruptcy only affect my credit or will it affect both of ours? Besides being underwater on our bankruptcy we are out of space at our home. Like I said I bought this house when I was single now married with 3 kids in a 2 bedroom. Where should we go from here?
Thank you for your time & insight.

By: Ken Mascia

Ken Mascia — Thu, 02 Feb 2012 15:28:38 +0000

Kris,
As previously stated, divorce is not considered an extenuating circumstance

By: Kris

Kris — Thu, 02 Feb 2012 00:53:06 +0000

Is a divorce considered extenuating circumstances? I was on the shit-end of the stick so to speak. Wife wanted to keep the house and then walked away before removing my name from the mortgage. It has been two years.

By: Ken Mascia

Ken Mascia — Tue, 17 Jan 2012 16:11:47 +0000

Mike – the short sale is too recent for you to obtain any type of mortgage financing. Generally speaking, FHA requires 3 years after a short sale

Eric, I’m not sure what you mean by “for about 11/2″. If she has been unemployed for more than a year then the requirement is typically that she be on the new job for a minimum of 6 months for that income to be used

By: eric

eric — Tue, 17 Jan 2012 14:03:26 +0000

Ken, my wife has been out of job for about 11/2 and recently is no longer receiving unemployment. If she is able to find employment how long what it take for here to qualify a loan?

By: Mike

Mike — Mon, 09 Jan 2012 19:42:43 +0000

Ken,

My wife and I moved from Minnesota to Idaho in August 2008. We had purchased a home in MN in March 2007 and used my VA benefit to purchase the house. We were current at the time we moved to Idaho, for my wife’s job, and rented the MN home for nearly 2 years before we had to accept a short sale as our tenants became late on their rent payments, which in turn caused us to be late on our mortgage payment.

We closed on the MN house in Sept of 2010 and B of A accepted our short sale offer for less than amount owed but now we are wondering if we can get an FHA mortgage in Idaho. All of the VA Guaranty was used to cover the debt to B of A.

By: Ken Mascia

Ken Mascia — Mon, 19 Dec 2011 15:09:04 +0000

Autumn –
No. The minimum time for this case is going to be 3 years. That is what FHA requires from a borrower that previously defaulted on an FHA loan.

By: Autumn Augusta

Autumn Augusta — Sun, 18 Dec 2011 03:47:24 +0000

And we had a FHA loan and are hoping to get another one as that is the most affordable way of buying a house. Do you think that we would have a chance at 24 months after we did a short sale?

By: Autumn Augusta

Autumn Augusta — Sun, 18 Dec 2011 03:44:45 +0000

My husband and I short sold our house in 2009 due to the
Fact government testing Of cancerous water in the well water.
Multiple family with little kids were getting brain tumors. With the several months of research and Erin Brokovich herself warning family’s in the area There was a possibility our children may get tumors. Not only do I work in the medical field but my mother is a pediatric nurse who took care of these families with brain tumors. I have gathered several documents supporting this research from Governors, CDC, and the EpA. My husband and I make great money and have great credit. We had to file hardship with the bank in order for us to let us sell, and 9 months later at closing they told us we could not close until we missed a payment. So we missed two payments and closed.
My husband found a loan officer, by chance, who is going to submit a case to his under writer of ” extenuating circumstances.”
I have spoken to many “Morgage brokers” who are telling that this would not qualify, but what did they want me to do wait and find out if it happened to my 9 month old baby ? After two years of research, nothing was proven, but files still remain open as to what is going on.