Millions of people across America went through financial cirisis in the last several years. Some were fortunate enough to weather the storm but other were forced to file Bankruptcy or sale their homes for less than what they owed. This process was called a “Short Sale”. Up until August 16th people were afforded the opportunity to purchase a new home after waiting 2 years and having 20% down after their short sale using conventional financing. Now those same borrowers are going to be forced to wait a bit loner. The new rules now prohibit an individual with a short sale from buying house for FOUR years. However, all is not lost and the consumer will have some options. One they can wait it out and conitune to imporve their credit and save money. Two, wait one additional year and use a FHA loan. FHA allows for an indivisual that has a short sale to buy a house 3 years after a short sale. While those that have had a bankruptcy will have to wait the four years underconventional guidleined and remains only a 2 year waiting period for FHA.
There are many other factors that contribute to a person being approved besides if an individual has had a bankruptcy or short sale or not. It is always a wise decision to give our office a call and we can review your individual sitaution and give you the options available.
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Heather@HeatherandSarah.netSarah@HeatherandSarah.net244 Redondo Ave.Long Beach, CA 90803