Wednesday, February 23, 2011
Can't Eat Your House: Buying After a Short Sale
With the economy the way it is today, a lot of people are getting in the mindset of why try to pay the mortgage when you are losing the house anyways. For some people this may be true. You can't eat your house.
However, for those who are able to keep up your house payments and undergo a short sale, your credit will not suffer as much and you will be able to buy another house sooner.
While the average short sale seller has to wait 2-3 years to buy another home, there are some home loans out there for certain sellers, who can buy immediately based on the criteria below:
• have not missed a house payment
• can prove steady employment for the last 2 years
• have a credit score at least 640
When I looked at these criteria, I wondered who might qualify since most banks require the short sale sellers to have legitimate financial hardship to qualify for a short sale. Financial hardships normally include job loss, divorce, unaffordable rising interest rates, job relocations, health problems, etc..
However, there may be circumstances where some people who are still making their house payments such as in the case of a job relocation or going through a separation or divorce, where financial hardship is imminent, but they still manage to squeak by.
For those who fall under the criteria above, there is now an alternative home loan program to consider after rolling over one those bumps in life. For more information contact me.
ABR, CRS, GRI, SFR, e-Pro
Coldwell Banker Residential Brokerage