Buying again after short sale

[Anonymous]

Whether or not a bank will give you a loan depends on how long it has been since you had the short sale. I've heard 2 years and I've heard 3 years. You are a more than a year past the short sale, so I guess when you have 20%-30% saved you can check. I'd also assume the more you can put down, the better your chances are. You will probably pay a higher interest rate, but with the high salary, that should help. I believe lenders want to see 2 years worth of employment. I'd suggest saving until you are at least 2 years past the short sale, have at least 2 years in your current jobs, and have 30% to put down. Sorry if it isn't what you want to hear, but just because you make enough money to cover a mortgage doesn't mean a lender will trust you will repay the loan. Unfortunately, you have a history of not repaying a loan.

[Anonymous]

Anonymous wrote:My husband and I completed a short sale in May 2011. We had a house in another state that had been on the market for 3 years with no offers. Other than a 30 day late the month of the closing, we were current on payments. How soon can we purchase again? Our income is about $600K per year now (it was NOT anywhere near that at the time of short sale).

If you make 600K a year - why not save up for a year and buy in cash?

[Anonymous]

Have you thought of contacting your original lender and making good on the amount that they gave you?

[Anonymous]

Anonymous wrote:Have you thought of contacting your original lender and making good on the amount that they gave you?

I'm not willing to throw $300K+ down the toilet. That's the whole point of doing a short sale in the first place.

[Anonymous]

The bank forgave 300k?


And you expect to be able to buy with the best rates 2 years later?

[Anonymous]

OP here. Just got pre-approved today for an ARM at about 4% interest. We are 14 months out from our short sale. 20% down payment required. We're thrilled!

[Anonymous]

Anonymous wrote:OP here. Just got pre-approved today for an ARM at about 4% interest. We are 14 months out from our short sale. 20% down payment required. We're thrilled!

RUUUUUUUUUUN from that offer! 4% on an ARM is TERRIBLE.

You want a FIXED rate loan, 4%. If you don't get that in 5 years the interest rates could sky rocket (very likely given what's going on here and in Europe) and you'd be up a creek x 2.

[Anonymous]

CONGRATULATIONS. YOU GAMED THE SYSTEM AND WON!

[Anonymous]

Anonymous wrote:CONGRATULATIONS. YOU GAMED THE SYSTEM AND WON!

+1

You SHOULD BE ASHAMED.

[Anonymous]

RUUUUUUUUUUN from that offer! 4% on an ARM is TERRIBLE.

You want a FIXED rate loan, 4%. If you don't get that in 5 years the interest rates could sky rocket (very likely given what's going on here and in Europe) and you'd be up a creek x 2.

OP is 14 months out from a short sale, so she doesn't have perfect credit. That's how she thinks 4% on an ARM is great.

And ARMS today have rate caps, so nothing will be skyrocketing.

[Anonymous]

OP here again. They're offering me a 10 year ARM, so fixed rate for 10 years. We can refinance to a conventional fixed rate, 30 year loan in 8 months, so even a 1 or 3 year ARM would work well for us.

And for those who think I gamed the system, you have no idea what our situation was. The short sale was due to a job transfer. We held on to the property (paying about $5K mortgage plus $2500 rent in DC) for 3 years with ZERO offers. At some point we had to start thinking about our own financial future and our childrens' and disregard the bank, other homeowners, etc. It was crazy to throw $5K down the drain each month, knowing that we would never be returning to the property and it would take years to recover its value (if ever).

[Anonymous]

Where did yo move from, op?

[Anonymous]

Anonymous wrote:OP here again. They're offering me a 10 year ARM, so fixed rate for 10 years. We can refinance to a conventional fixed rate, 30 year loan in 8 months, so even a 1 or 3 year ARM would work well for us.

And for those who think I gamed the system, you have no idea what our situation was. The short sale was due to a job transfer. We held on to the property (paying about $5K mortgage plus $2500 rent in DC) for 3 years with ZERO offers. At some point we had to start thinking about our own financial future and our childrens' and disregard the bank, other homeowners, etc. It was crazy to throw $5K down the drain each month, knowing that we would never be returning to the property and it would take years to recover its value (if ever).

You are rationalizing.

I am frankly a little shocked another bank would take a chance on you.

[Anonymous]

Anonymous wrote:OP here again. They're offering me a 10 year ARM, so fixed rate for 10 years. We can refinance to a conventional fixed rate, 30 year loan in 8 months, so even a 1 or 3 year ARM would work well for us.

And for those who think I gamed the system, you have no idea what our situation was. The short sale was due to a job transfer. We held on to the property (paying about $5K mortgage plus $2500 rent in DC) for 3 years with ZERO offers. At some point we had to start thinking about our own financial future and our childrens' and disregard the bank, other homeowners, etc. It was crazy to throw $5K down the drain each month, knowing that we would never be returning to the property and it would take years to recover its value (if ever).

That's the idea OP, you should have rented the thing out. Even so you haven't learned! You think you can refinance in 10 yrs, gaurenteed? Lesson from your short sale: realestate doesn't always increase in value. There very likely could be another recession. RENT. Wait for better credit scores, larger down payment and a rock bottom market. Otherwise you will be doing short sale #2.

[Anonymous]

A mortgage is a commitment.