If you are under the impression that Short Sales are not that common and don’t happen to a lot of borrowers, you be mistaken. Short Sales can happen for a multitude of reasons but first let’s go into what a Short Sale is before we can even entertain FHA Guidelines On Short Sale. What is the point of going over the guidelines if you are unsure of what a Short Sale is and what it is all about. Recently, if you were a home owner before the Great Recession, you probably saw your home value sky-rocket upwards only to come crashing down a short-time later. If during this time of increased value you either purchased or did a cash-out refinance you probably found yourself upside down on your home just a few years later. What I mean by upside down is you owed way more on your home than what it was worth. For example, I saw a borrower who purchased their home for $273,000 and 2.5 years later the home was worth $132,000 which represents a 52% reduction in value in just a short time.
When I begin to talk about FHA Guidelines On Short Sale I need my borrowers to understand what a Short Sale is, and in its simplest form a Short Sale is a negotiated sale price of your home for less than what the home was worth. In my many years I have seen this scenario hundreds of times so I am an expert and navigating these issues. Now just because you might have owed more on your home than it was worth, banks and lenders were not under an obligation to allow you to Short Sale your home and sometimes these requests were denied unless you were able to show financial hardships that would prevent you from paying for the home. Now even though you may get your Short Sale approved, you could wind up paying more taxes when filing your tax returns as the amount of the loan that is written off by the lender could be considered taxable income on the debt forgiveness.
FHA Guidelines On Short Sale are some of the most lenient loan guidelines for the fact that you really only need to abide by a mandatory waiting period since the Short Sale which should allow you to rebuild your credit and increase your FICO credit score. The mandatory waiting period per the FHA Guidelines On Short Sale is a 3 year waiting period after the Short Sale is completed or the date that is on the HUD-1 Settlement Statement. As long as you are 3 years removed from this date, all you will need to do is provide proof the waiting period has been completed and you can move forward with trying to get your approval under FHA guidelines. Once you know the FHA Guidelines On Short Sale have been satisfied, you can look at the following guidelines:
If you are looking for a professional with years of experience doing loans for all types of borrowers, then you need to contact Nick Ferrante NMLS# 1110570 immediately at 630-465-2656 as I can go over your scenario and let you know what the best loan program is for you and how we can get you an approval and in your new home sooner than later. Borrowers always need someone on their side and that is exactly what I offer by working only with Fairway Independent Mortgage Corporation NMLS# 2289 who only do loans to the minimum guidelines as published by the loan program. If you feel you have been wrongfully denied, let me work with you to determine if the denial was warranted or if the lender had additional requirements or lender overlays to prevent you from an approval. Please click here to fill out an application today and I will get back to you ASAP!