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Buying A House After A Foreclosure

Just about everyone at this time has been touched by the mortgage collapse and it would be hard to find anybody which did not know somebody which had to go through a foreclosure or a short sale on their house.You may have recieved something either in the mail or left on your door stating how its better to do a short sale instead of a foreclosure .
It is very possible to get a loan right after your short sale if your bank allowed you to do a short sale without missing any payments. Getting the approval on the short sale sometimes can be kind of tricky, usually the bank wants you to not make the payment before they will even consider allowing you to do a short sale.
If you did miss mortgage payments in doing a short sale you will have to wait at least 3 years before you can get an FHA loan, now thats 3 years from the date of the short sale not from the date you started to fall behind.  Sometimes losing your home through a foreclosure or a short sale does not make a difference in regards to how fast you can buy a home again if you are going through a FHA loan although it will in a conventional you will have to wait 7 years if you were foreclosed on.   So after those 3 years expire you can put down payment on a home using an FHA loan with merely 3.5% like everyone else trying to get a home loan.
When looking at other loans that are not FHA loans there are some differences. loan, and getting a regular loan.  Currently Freddie Mac and Fannnie Mae are the two biggest investors at this time.  These two big govt. sponsored corporations are buying the majority of the loans that the banks are doing.From the date of closing your short sale your waiting period is only 2 years to get another home loan.  But please keep in mind if you are on another loan whether it is investment property or you co-signed on it, there can be no mortgage lates within the 12 months of the application.  That is a big difference when it comes to getting back into the market.  Credit is also going to be a determing factor.

Homes are much less now than they were 3-5 years ago and more than likely there will not be any dramatic price increases in the next 2-3 years.   In closing if you find yourself in a position of possibly having to do a short sale it could actually be a blessing in disguise.  If you are struggling to make those payments on a house that is only worth its value in today’s market. 

Focus on rebuilding your credit and saving money as much as you can during the short sale process.  Some short sales can last as long as a year, so that is an entire of not making any mortgage payments.  So save, save, save and you could possibly have another home just as nice as the home you had to walk away from and with only have the mortgage payment.

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