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 Posted: Thu Oct 25, 2007 4:15 pm Subject: Mortgage Loan Question |
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My wife and I went through a really tough streatch due to health issues with our newborn son. Needless to say we almost lost our house. We were, at the last second, able to short sale it.
My question is, once we get 100% back on our feet, will we be able to get another mortgage? A short sale is a lot better than a foreclosure but how much does it hurt when applying for another mortgage? Also, how long should we expect to wait? 2 years? 5 years? more?
Thanks for the help.
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got2pay2play
Joined: 30 May 2007
Posts: 61
Debtcc Points: 1943
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| Posted: Thu Oct 25, 2007 9:35 pm Subject: |
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This is a common concern right now...there is an epidemic of property loss due to defaults.
Right now, the lenders have reverted back to the :old days" of lending with regard to their standards....good credit (700 FICO+) and a traditional down payment (10%-20%). Investors are no longer backing sub-prime mortgages therefore the offerings are non-existent for blemished credit.
Hang in there...there isnt a time frame that I can see where sub-prime will be back in the picture, but if I had to guess, I would say 5-6 years depending on how long this default wave rolls on.
Work on getting your credit up and running and keep it clean.
Also, you were advised on the possible tax implcations for the short sale right?
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volleyballmom
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Joined: 27 Aug 2007
Posts: 4178
Debtcc Points: 24893
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| Posted: Fri Oct 26, 2007 12:08 am Subject: |
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ummmmmmmmmmmmmmm, tax concerns???? 
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Guest
Debtcc Points: 100
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| Posted: Fri Oct 26, 2007 12:09 am Subject: |
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thought I signed in...guess not
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got2pay2play
Joined: 30 May 2007
Posts: 61
Debtcc Points: 1943
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| Posted: Fri Oct 26, 2007 3:16 am Subject: Mortgage |
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I am a mortgage officer for a National Mortgage Company. Our standards have not changed that much. We still offer 100% financing to qualifying customers and they don't have to have a 700 score. FHA and VA loans are very forgiven on past credit issues over two years old. After a bankruptcy an applicant can buy a home after 24 months if there were extenuating circumstances they can document. The media is contributing to the housing market problem. Lenders are still lending, we still have good programs from 100% financing to 3% downpayment through FHA - so the programs are there, but where are the customers? I think the media is scaring them away. My income dropped 50% this year and it wasn't because I didn't have money to lend or didn't want to, it's because some guy on CNN is saying, "whatever you do, don't buy a house this year" - where does that guy live?
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lostindebtat50
Joined: 24 Oct 2007
Posts: 82
Debtcc Points: 1955
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| Posted: Sun Oct 28, 2007 5:51 pm Subject: |
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lost-You are correct, there are stil FHA loans available, and yes someone can buy a house 24 months after BK. As you know, FHA loans can only go so far in terms of the loan limits which, in most states, the home prices exceed the FHA limits. Please take into account declining property values.I also work at a bank, the 4th largest in the US, and we are cutting our mortgage division due to the issues in the industry. And yes, investors are backing out of sub-prime...we are offering mod's left and right to help existing homeowners.
Got2-I sent you a PM with regard to the tax issue....
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volleyballmom
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Joined: 27 Aug 2007
Posts: 4178
Debtcc Points: 24893
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