Scripps Ranch Real Estate and Community Blog

Homeowners selling their homes for less than they owe on their mortgages or trust deeds (Short Sales)  often ask "How long  must I wait before I can purchase a new home?"

Well finally there is some good news! Beginning July 1, 2010 Fannie Mae has changed the rules for homowners who have gone through a short sale or participated in a deed-in-lieu of foreclosure arrangement.  Buyers who have gone through a short sale may qualify for a new mortgage in as little as two years from the recording of the short sale or deed-in-lieu of foreclosure. (Currently the penalty period is four years). 

The requirements for qualifying for the new loan after the two year penalty period include:

    *A down payment of 20% or more toward the purchase of the new home

    *Reestablishing a good credit score under Fannie Mae's credit scoring system (FICO scores are important here.)

Under Special circumstances it may be possible for a homeowner to qualify for a new loan after the two year penalty peiod without a full 20% down payment if they can prove that the short sale  was due to exceptional circumstances such as:

     *Job Loss

     *Divorce

     *Extraordinary Medical Expenses

Fannie Mae, Freddie Mac and the FHA are taking these steps towards keeping some of the existing homeowners in the market in order to serve as a source of demand to absorb the excess housing inventory coming onto the market.  This excess inventory will be caused in part by retiring boomers looking to downsize as well as foreclosures.

There are a number of other requirements for qualifying for these programs. Contact Claude Braunstein & Associates to learn more about reestablishing credit to facilitate purchasing a new home.

For more information about how Claude Braunstein & Associates can help you buy a new home anywhere in San Diego County, sell your home for the highest possible price, or particpate in a short sale contact  Claude Braunstein  or phone our team at 858 271-7770.  A Coldwell Banker affiliate with over 30 years of experience, Claude and his team will help you find the right home at the right price and help you to take advantage of the current home purchase tax credits.  Additional information is available on our website www.ClaudeBraunstein.com , where you can also search the MLS for a suitable home.