| Posted By |
Message |
TheDivineMrsM
2 girls 4 me!
Member since 8/08 7878 total posts
Name:
Mama mama mama....
|
short sale and credit rating
My ILs sold their house in AZ via short sale in November 2011. They're renting in NJ and both employed. They want to buy a condo somewhere in south Jersey in the next few months. I know short sales mess with a person's credit, but how badly will the short sale affect their ability to buy?
|
Posted 9/9/12 7:02 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
|
|
Re: short sale and credit rating
Usually, it takes around 2 years before someone can get a mortgage loan again, after selling via a short sale. The credit takes a hit because it shows as a charge off on the credit report.
Of course, the damage will be worse if the short sale seller hadn't paid their mortgage for months/years prior to going the short sale route. That type of delinquency hurts their credit worse than just the short sale itself.
And there are a lot of factors that go into your FICO score, so how your inlaws have handled everything else in their financial/credit life prior to and after the short sale will come into play.
And different lenders have different requirements that they layer over the requirements of the specific loan programs (FHA, Fannie Mae, etc.).
So there's no one-size-fits-all answer. The best thing they can do is consult with a mortgage lender, have their credit run, and find out whether they can currently qualify for a loan, and if not, what they need to do in order to get a loan. In some cases, a reputable credit repair service can really help.
|
| Posted 9/9/12 7:12 PM |
| |
|
Pooka
Oh Happy Day!!
Member since 11/06 5689 total posts
Name:
|
Re: short sale and credit rating
Eh, not too badly actually. I had to do a short sale b/c of my divorce. Affected my credit by 100 points or so. It's been less than a year and I've been told I could go buy something now if I wanted.
|
| Posted 9/11/12 4:01 PM |
| |
|
summerbaby11
LIF Adolescent
Member since 11/10 779 total posts
Name:
|
Re: short sale and credit rating
i guess it depends on the person and situation and house price, but my cousin in law just got turned down for a mortgage b/c he short sold his co-op last year.
|
| Posted 9/12/12 3:24 PM |
| |
|
Ian&EmmesMommy23
My family is complete!
Member since 11/08 12970 total posts
Name:
Diana
|
Re: short sale and credit rating
my credit dropped 100 points. not horrible.
|
| Posted 9/14/12 1:47 PM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: short sale and credit rating
credit wise you might be ok to get a mortgage sooner
but FHA requires 2 years post closing
anyone that tells you different is not telling you the truth
once an underwriter see's a short sale they will deny the file if it's not greater then 2 years
|
| Posted 9/14/12 2:18 PM |
| |
|
