Thursday, December 1, 2011

Short Sale vs Foreclosure - part 2

What happens when I am ready (and eligible) to apply for another mortgage?

On future lender forms, you will have to answer a question that asks if you have foreclosed on a property within the last 7 years.  Of course, if you have foreclosed within said time frame your rates will be affected.  If you have negotiated a short sale instead of a foreclosure you don’t have to worry about answering a question like that. As a matter of fact, if you are current on payments upon the close of your home, you may apply for a FHA loan right away.  If you have been delinquent on your payments at the time of your closing you will have to wait 3 years until you become eligible for a FHA loan.

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