Hi Everyone,
I am in the process of buying a second home 3.5 years after my short sale. I thought it might be helpful to post the adventure on here so that those of you who are going through or have gone through a short sale and are buying again can share experiences and advice. Here is a quick background on my situation:
Sold first home via short sale due to my divorce in Nov 2010. I agreed to payback a $10k promissory note at 0% interest for the next 5 years. I have paid on this monthly since Jan 2011.
Credit was spotless and tanked to about a 620 credit score. Inbetween 2010-2012 I paid off credit cards and was able to get my credit score up into the low 700's.
Bought current home in Nov 2012 with 20% down-payment, credit in the low 700's.
Currently, signed offer to sell current home making a little money off of it. Bought in Nov 2012 for $213k and selling for $225k. Signed offer to purchase bigger home in nicer area for $332k but only putting down 10%. Credit is in the 720's.
I do have a preapproval from my mortgage company. I am using the same company and loan officer that I used to close on my current home so he is aware of my short sale and that situation. He believes everything should go through but of course there is always a chance that the underwriter will deny the loan. I am hoping that good standing on my current mortgage will be a positive.
Anyone else buying a second time around following a short sale? Is it easier or more difficult?
