Original article source: Massachusetts Real Estate Blog
As a Realtor who has been heavily involved closing Massachusetts short sales over the last five years, one of the questions that I get asked quite often from home sellers is how long will it take before I will be able to buy a home again.
The answer to this question does not have any clear cut and dry answer. There are quite a few variables involved when trying to figure out when someone will be able to purchase a home after a foreclosure or short sale.
Going through either a short sale or a foreclosure has the potential to seriously impact ones credit. Government entities Fannie Mae, Freddie Mac and FHA do not directly loan money to individuals but are the governing body that work with lenders to guarantee loans and free up money to provide mortgages.
Banks typically have the authority to lend to whoever they want but will generally follow the guidelines set forth by these entities. There are some lenders of course that will take greater risks with some borrowers than others.
Below are the general guidelines that FHA, Fannie Mae and Freddie Mac follow when considering whether to fund a mortgage loan to a borrower after they have completed a short sale or foreclosure:
See Buying a home after short sale for a complete understanding of how your credit will be impacted, as well as the time period before a borrower will be able to get financing to purchase another home or other Real Estate.
There are different guidelines for getting a new mortgage based on circumstances as well as the type of mortgage loan.
In this article the time periods for getting a mortgage after both a short sale and foreclosure are discussed. On of the top concerns of any borrower after completing a short sale or foreclosure is how to increase a credit score.
If you are needing to complete a short sale of your home or condo in Ashland, Bellingham, Framingham, Franklin, Grafton, Holliston, Hopedale, Medway, Mendon, Milford, Hopkinton, Southboro, Westboro, Natick, Northboro, Northbridge, Whitinsville, Upton, Uxbridge, Shrewsbury, Worcester, or Douglas Get in touch! I would love to interview for the chance to represent your best interests.
3 comments:
As we are now 3-5 years into the housing crisis, former short sellers are becoming eligible to buy again at much better prices and interest rates. I think it's common for former short sellers to feel a little sheepish about getting back into the market, but it can be done sooner than most think.
I also think the market will recover sooner if we get these former owners back into the market and back into homeownership.
I couldn't agree more. We need to encourage these buyers to get back into the market.
I agree to Bill, I also think that in order to overcome the housing crisis the former home sellers must go back to the market.
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