Grab RSS Feed...by Anthony Buono
I have been asked this question a lot lately. After a foreclosure or a short sale, when will I be able to finance a home again?
The answer may take you by surprise!
Some lenders are currently letting people buy a home within 12 months of a short sale, foreclosure or a deed-in-lieu of foreclosure as long as the person buying a home was a non-purchasing spouse on the previous loan.
Here is an example of how this might work:
- In 2008, a husband bought a home in his name, only he was on the deed and the mortgage.
- In January 2010, he sold the home as a short sale.
- In January 2011, the wife is eligible to buy a home without the husband (assuming that she has the income, credit and assets to qualify).
If you are one of the people who has had a short sale or foreclosure in the last few years, be sure to keep informed about the current guidelines. You might be surprised how long you don’t have to wait. The guidelines will change regularly over the next few years as more people are ready to buy a home after a short sale or foreclosure.
