Mortgage After Short Sale

[Anonymous]

I completed a non-delinquent short sale in October of 2008 (no lates).  The first mortgage was paid in full, 2nd mortgage paid short.  No other marks on credit, except for some inquiries.  Current scores are 702, 728, and 790.

I know that Fannie Mae stated that if you did a short sale and were never late, you could apply for a mortgage with no waiting period.  However, I've now been turned down by two mortgage companies because of this "foreclosure", even after I explained the situation, extenuating circumstances (prolonged job loss), and my understanding of the guidelines.

So I guess I'm wondering...does anyone have any hints about who I could contact about getting a new mortgage (conventional, 10-20% down)?  It's frustrating, to say the least, to read that I should be able to apply, only to find out that I can't get approved.

Thanks in advance.

[Lel]

You're right, since you were not in default at the time of short sale, then you are theoretically eligible for a new mortgage immediately.  However, individual lenders often will establish their own guidelines that are stricter than the minimum requirements set forth by Fannie Mae.

You could keep looking for a lender who would be willing to give you a loan.  Perhaps get some referrals to a loan officer who has experience with persons with less-than-perfect credit profiles.  You could also consider an FHA loan.  Maybe FHA lenders would have somewhat more relaxed rules regarding non-delinquent short sales.

BTW, your job loss might not be considered an extenuating circumstance.  Extenuating circumstances typically refer to major life changes, such as the death of a wage earner or a major medical illness leading to disability.

[Anonymous]

Yeah, I wasn't sure about the extenuating circumstances part, but I think that only applies if you're wanting to have the "extenuating circumstances" waiver of waiting period. 

As far as FHA goes, the value of the home we are considering is a bit above the limits for our area.  

Is there a place to find out who might consider us?  Our credit is definitely less than perfect, but with scores all above 700, we're also not a horrible risk, either (well, at least in my mind..)

Thanks.