September 19, 2013 rummy 0Comment

A year ago, before the bandwagon was even built, we told you about what  we called “shadow consumers”. They are people who would want to buy;  they can comfortably afford home ownership most especially with today’s  rates. However, they have to calmly wait for their credit to improve  sufficient to get a mortgage. FHA would not give a loan until the elapse of three years from the occurrence of a foreclosure. Basically,  foreclosures and short sales will usually remain on your credit report  for seven years. Additionally, bankruptcies usually last for 10 years.  Waiting for this long can be quite a hectic as it is such a long wait.  This is why, you are apparently in fear of selling your home on  foreclosure or short sale. You are currently facing hardships and  wondering whether letting go your home on short sale is a wise route to  follow.

Qualifying for FHA Loan
There is no need to worry  anymore. Finally, you have the opportunity to comfortably let go of your home on short sale or foreclosure. Thanks to FHA mortgage you can be in a position to repurchase your home at a later date. This is possible if you meet one of the various criteria, namely:
1. Your property must  not have been purchased as a rental: You only qualify for an FHA  mortgage if your property was bought for personal residential purpose  rather than investment
2. if you are currently facing hardship: the  Housing Urban Development usually conduct several evaluations to  determine if the home owner is undergoing hardships. Therefore, if your  plan is to walk out of your home or attain a strategic short sale, you  become automatically disqualified

Waiting Period after a Short Sale
The period of time you will have to wait in order to obtain an FHA mortgage will vary. This will depend on your credit history as well as the  reasons for the short sale or foreclosure. There are some circumstances  that can offer you the ability to obtain FHA mortgage immediately after a short sale which include:
1. If yours is not a case of default in your previous mortgage prior to the short sale
2. You made your entire previous mortgage and other installments of debt  payments in a timely fashion for a period not less than 12 months  leading to the short sale.

Alternatively, you may have to wait  for a period of three years before applying for an FHA loan if you do  not meet the aforementioned qualifications. On the other hand, you might qualify for a loan sooner than three years if you can provide evidence  that unavoidable circumstance was the cause of the mortgage default.  Such circumstances would include a severe illness or death in the  family, divorce or even loss of job.

If you are planning to sell your home on short sale or foreclosure, you should now have the  confidence to do so. Westchester Real Estate Experts and Bronx Real  Estate Experts are committed and experienced real estate agents who will help you market your home. With the availability of FHA loan selling  home on foreclosures and short sale just became easy!