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Is There Life After a Short Sale

GOOD NEWS…THE ANSWER IS YES!

  This is such an important question to ask yourself if you are going through a Short Sale.
So many people feel that they will never recover from this type of hardship.  Not to worry, there is hope!

FHA Guideline:

• If the borrower/homeowner has a short sale and they are current on their payments prior to the short sale then they are still eligible for FHA financing subject to underwriter discretion.
• If they are in default at the time of the short sale, then they must wait 3 years, exceptions can be made for extenuating circumstances.  These only apply to FHA and VA loans, when it comes to the rules for an exception.  Extenuationg circumstances are nonrecurring events that are beyond the borrowers control that resutl in a sudden, significant, and prolonged reduction in inclome or a catastrophic increase in financial obligations.
• After 3 yrs: Max LTV 96.5%

Conventional:

•  If the borrower / homeowner had a short sale they must wait a minimum of 2 years to repurchase
• After 2 years: max LTV 80%
• After 4 years: max LTV 90%
• After 7 years: max LTV is based on product

VA

• If the borrower / homeowner had a short sale they must wait a minimum of 2 years to repurchase
• After 3 years: max LTV 100% upon VA eligibility

If you or any one you know is in need of more information regarding Short Sales, please contact us right away.  We are certified SFR, Short Sale Foreclosure Resource and have had 100% success helping our clients navigate through the short sale process.  We can help you too.

Pam Parton & Joanna Woolley
760-580-1615 or 760-580-1630