Want to be Buying After a Short Sale?
Let us Show you How!
The short sale process is still a mystery to many people, even after all these years. Lots of people still don’t understand the process. Most lenders will admit that it’s very difficult to provide mortgages to homebuyers who recently had a short sale but we have found the perfect solution for these people with our lender, Charles Daily from iloan. From our research he is the only one offering this product.
If buyers are current on their mortgage and other installment debts at the time of the short sale of their previously owned property or owned property and their new payment will likely be much less, it’s reasonable to assume that they are ” a good credit risk”.
Different lenders report short sales to the credit bureau in different ways. Needless to say, for someone to have a qualifying FHA credit score for a mortgage after a credit hit like this, it is a compliment to the borrower’s payment performance and credit management. The fact that if this credit score is maintained through a financial hardship that was recognized and affirmed by their previous mortgage lender shows the borrower has the ability to make the payments on the new home.
Because in most cases (barring relocation), an additional step must be taken with the appraisal of the new property. In addition to the analysis that goes into every FHA transaction, the details of the new property must be carefully compared to the home previously sold short. What this does do is force those involved in approving the loan to more carefully scrutinize the details of the appraisal. Only good things can come from spending more time analyzing an appraisal.
There are situations that are unique to the buyer who is eligible for purchasing after a short sale without a waiting period using FHA insured financing that present a picture of that borrower in a light we don’t normally see. The only justifiable questions to consider are whether the agreement between the borrower and their previous lender served as satisfaction in full and whether or not the new property meets the “step down or dissimilar test.” But, neither one of those questions speak to the borrower’s Credit, Capacity or Character. Those are inherently not in question.
WE CAN HELP:
If you are upside down on the mortgage to home value and want to be buying after a short sale, Adam and Kirk Duckwall with Edina Realty’s Duckwall Team and Charles Dailey from iloan have successfully negotiated with many lenders to allow someone to do this. Many people think this is not possible and will tell you that you need to wait anywhere from 2 to 5 years after a short sale to be able to buy another home and that is just not true. With a properly negotiated transaction between the seller, buyer and the seller’s lender will allow the seller to be in a credit worthy position to now purchase a new home. This is only possible by using a few select lenders that Charles Dailey is utilizing for their willingness to lend to some after a short sale.
If you would like more information Click Here or feel free to call us today at 651-303-0019.
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