Getting Mortgage After Short Sale?
I filed bankruptcy back in August of 2007. I filed on everything that I owned including my house. I kept paying my mortgage so I could keep my house. Unfortunately, my husband was laid off from his job for a awhile last year and we got behind on our mortgage. We listed our home for sale after getting a “payoff quote” and got an offer just last week. The thing is, I never got an ACTUAL payoff from my lender! When they finally sent me one it shows that I owe more than what I can get from selling. I owe $ 96,000 on my mortgage, but with accrued interest, late fees, etc. my balance now is $ 104,000. I just got an offer for $ 110,000, and after paying the realtor fees and the buyers closing costs, I will be in the negative (I don’t have the extra money to bring to the table at closing). We are thinking of a short sale now and I was wondering how long after the short sale will I be able to qualify for another mortgage loan? Right now the loan I have is FHA and I know that I am protected under the bankruptcy law, so I won’t have to pay the difference of the short sale. Any help would be appreciated.
Thanks
Before I found out that I owe more than what I could sell the house for, I was approved for a new FHA loan with the condition of me selling the house that I am currently in. I have raised my credit score a lot since my bankruptcy. I just need to know how long after a short sale that I will be able to get another FHA or Conventional Loan.
Mortgage Payments (Barron's Financial Tables for Better Money Management)
Updated to reflect current rates, these quick reference tables show the size of monthly payments necessary to amortize loans on amounts up to $600,000 over periods ranging from one to 40 years across a broad span of interest rates. There is a short-entry glossary of financial terms at the back of the book.
I had no choice but to default on several credit cards, utility bills and a home back in ’03/04. Since then I’ve been making peon money ‘under the table’ so it looks like to the world I have no job. My mom passed and left me a small inheritance, I would like to buy a house and will need a mortgage loan. I’m putting down 50% for payment which is all I have. All that stuff is going to show up on my report? If I even get approved my Interest rates will be sky high. Should I even bother? Or stay where I’m at and wait for the negative stuff to go away? I’m afraid to do a credit report myself because I don’t want the collectors to know where I’m at. My sister has a credit score of 780, Mine I’m afraid to find out, it’s probably 78.
Note to Delilah.
My exhusband got into meth and was sqaundering the money I was trying to pay bills with. I had no choice but to leave when he threw me around the house. Then he threw me out of the house at 3AM because I refused to hand over more money. The house was in both of our names and he never made a full payment himself. he was a nice guy at first but meth does bad things to people. Yeah I was trusting and stupid. Isn’t everyone at least once?
Maybe you should look at the real world. I’ve been cleaning horsestalls and housecleaning for Four dollars an hour so no, my life hasn’t been cushy. In a perfect world I would’ve avoided that guy all together. The house I want to buy is not much more than a run-down fixer upper not some Malibu mansion.
7-10 yrs…thats how long bad credit follows you.
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LikeDislike2 years after the close of your shortsale, some investors require 3 years. But keep in mind, the short sale will hurt your credit score too, so you have at least 2 years to build it back up!
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LikeDislikeGood luck getting any kind of loan after a bankruptcy and a short sale of your home. You would be doing good if you were allowed to rent something.
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LikeDislikeIn some cases 2 years, but you would probably have to really do some searching for a lender to give you a shot with your credit history.
You also need to get permission to do a short sale from your bank. You cannot unilaterally decide to short sale on your own. They have to approve the offer you get after letting you even attempt a short sale.
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LikeDislikewell, it depends on several factors:
1. the negatives will not go away at least until 2011. they stay on your reports for 7 years. it also depends on when they filed it with the credit bureaus, which could mean it could be on your reports until 2012 or 13.
2. how much of a loan would you be applying for and what your monthly salary is. you mentioned that you have an inheritance. you might not want to put all of your eggs in one basket in terms of putting 50 percent down for the house. you may save in interest over the 30 year period, but what will you do if you move into the house and in a year, the furnace breaks. better to stash some for a rainy day instead of putting it all into the down payment.
3. whether you would be approved or not would depend on all of those things mentioned above. however, one thing that you need to do today is run your credit scores. do not even walk into a mortgage office or a bank without doing this. you will need to be preapproved to buy a house. every one of these places is going to want to run your credit. if you let every tom, dick, and harry do so, you will get all kinds of inquiries against your credit. this isn’t good either. better to run the scores and then shop around. they can’t run your scores, unless you give written consent.
overall, whether to wait or move now, would depend on how bad the credit scores are. if they are less than 650, i would tell you to wait. build up your credit, pay on time, and hopefully some of the negs will fall off.
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LikeDislikeYou MIGHT get approved for a hard money loan that will cost you dearly in interest 12-25% but you might also have to pay off all the debt before anyone will give you a loan.
So you walked out on your debts so the rest of us pay those and then you get your money and cheat us again by not paying your fair share of taxes and we are suppose to be concerned because you want a house and may not get it? Hmmmm…
Go ahead report it or thumbs down to your hearts content, someone needs to put a little reality in your head!
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LikeDislikeYour chances of getting a home loan right now is ZERO. Have you heard we are in a mortgage crisis? Now you can buy a house on a private contract, they are there, you just have to look around.
Your bad credit will not just go away, your score will be 78 for the rest of your life until you start to repair it. Don’t worry, creditors already know where you live, pull your report and it will show your current address. You can call your credit card peeps and utility company and settle for less money. They have wrote you off as a loss, so if they get 10 cents on the dollar, that is pure profit for them. Do the right then and buck up!
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LikeDislikeThere is a big chance. There are many lenders now that cater bad credit people. They give bad credit people a second chance. You can search using Google for those lenders.
Also check this resource – http://www.badcreditresources.com/bad-credit-personal-loans.html
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