Short Sale FAQs
There are a common misconception in the Real Estate and Lending industry that misleads consumers into believing that if they short sale their home, they will not be able to buy a home again for 3 to 7 years and/ or they are told to behind on their mortgage payments in order to complete their short sale.
We have assisted several clients recently in short selling their home without going delinquent and we were successful in getting them into a new home within weeks of closing their short sale.
FHA allows a homeowner to get a new loan without a waiting period if the borrower meets the following criteria:
* They have a financial hardship
* They are current on their mortgage and installment debt 12 months prior to the completion of the short sale.
* They are not buying an equal size house (need to downsize)
* The borrowers are not using the short sell to take advantage of the market
All of this information can be verified by HUD referencing the ML-2009-52
Additionally if your property is located in California, Senate Bill 458 now prohibits senior and Junior line holders from requiring borrowers to owe or pay for a deficiency in a short sale.
Full details of the law can be found at www.legalinfo.ca.gov