Question: My clients visited a national builder who insisted that their lender can immediately approve mortgages to previous homeowners after a short sale with lates. Can they really lend on a home after a short sale?
Answer: Beam me up! Wouldn’t it be awesome if everyone who had a short sale could turn around and purchase another home? But that would stimulate our housing market therefore it must be sci-fi.
After calling the national builder to inquire about their mortgage programs, and as suspected, we all drink from the same pond.
For instance one of the most popular loans today is offered by the Federal Housing Administration.. FHA Mortgagee Letter 09-52, is very specific on their guidelines. (I know, it shocked me too… a government mandate that is clear and concise).
FHA Short Sale Highlights:
- The borrower must have been current on their mortgage at the time of the short sale and for the 12 months prior.