Posted by Jaymie Tarshis on 10:54 AM with No comments
If you're one of the millions of homeowners who had to undergo a short-sale in the last few years you may have to add some waiting time before your next chance at home ownership. The new mortgage-rules, which take effect August 16th, will add about two years to the waiting period after a short-sale.
How will this affect home buyers?Currently as the rule stands you can buy a primary, secondary, or even income property just two years after a short sale. But the waiting time to obtain a new mortgage will rise from two years after a short sale to four years. Any home buyers with loan applications dated after the August 16th effective date will be affected by this new rule.
What can home buyers do?
The best approach that a previous short-seller can take is to talk with a lender who can provide accurate waiting times for you and your particular situation. It's possible that your lender will consider other compensating factors when reviewing your mortgage application.
Other than that, it's important that short-sellers immediately start to rebuild their credit. A lot of the times derogatory items can be mistakenly put on a credit report after an event such as a short-sale or foreclosure so it's important to monitor it and make sure that everything is reporting accurately. Over time, credit can be rebuilt and will help make a huge difference when trying to buy a home the second time around.
Get a Free Consultation from one of our expert mortgage officers and find out how you can become a homeowner again.