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FHA after Shortsale (Foreclosure)

New Member

FHA after Shortsale (Foreclosure)

You all have been most helpful in all the information provided and was hoping that someone could give me a little insight.  In early 2010 I moved out of my home, signed a lease and filed divorce.  My ex remained in the home and fell behind in payments in the fall of 2010.  I stepped in at that point and put the house on the market and applied for a HAFA approved Shortsale. Got an offer on the house 12/10, Hafa approved on 2/2011, and closed 5/2011. Even though it was a HAFA approved shortsale there are 2 months reporting 120 day lates and I have been told that lenders see that as a foreclosure not a shoartsale (is that true??).  

 

I am now looking to buy again, and will be going FHA this time around.  I am a single mom of 1, been with my employer for 13 years, and make in the mid 80-low 90's.  My mid credit score is 700-710, and besides a car payment and small student loan payment, I have no debt and no lates ever (except above mortgage).  I was pre qualifyed back in the summer for 230k (however I will be in the 180-200k range).  Since I am planning on building (local community), can I start the process before the offical 3 year mark, as long as I close the FHA loan after the 3 year mark?  It takes about 5-6 months with the builder I would be using, and that means I would need to get started in January. I have been told by one person that you can't start the building process until 3 years has come and another told me that it is fine as long as you close after the 3 year mark. Anyone have any experience with this? 

Message 1 of 5
4 REPLIES
Super Contributor

Re: FHA after Shortsale (Foreclosure)

you CAN get pre-approved subject to the f/c waiting period lapsing....

Retired Lender
Message 2 of 5
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Frequent Contributor

Re: FHA after Shortsale (Foreclosure)

Yes, you can!!! My deed in lieu was final Feb 2009. I closed on my home Oct 2012, FHA with a mid score of 660.

5/30/15 EQ 596; TU 605; EX 580.
10/17/16 EQ 632; TU 656; EX 647
Message 3 of 5
Contributor

Re: FHA after Shortsale (Foreclosure)

yes it is possible.  i just did it.  i had a home foreclose april of 2010.  we just closed in august on a new construction home and the process was very smooth.  i was pre approved in january which was three months from my foreclosure seasoning.  i even made it through desktop underwriting with no issue.  the only annoying thing was i had to get an official copy of my deed of foreclosure for the mortgage company.  not sure what paperwork is needed for a shortsale but you get the drift.  good luck!

Message 4 of 5
Super Contributor

Re: FHA after Shortsale (Foreclosure)

we can usually get the sale date from the county appraisal district....

 

Retired Lender
Message 5 of 5