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?
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!