To obtain a mortgage loan while in the process or shortly there after, once you have completed a short sale?
We could get pre-approved with no problem, my credit is still good and we could put down the earnest money. The builder is 9-12 months out and they would offer a price reduction addendum to cover us when the price drops prior to settlement. My scores right now prior the the short sale are 690-705, my husband is about 600 and not on the loan going thru Short Sale.
It really comes down to how the lender will report the paid off mortgage to your credit. If they report it as "settled for less than the amount owed" then lenders will see it like a foreclosure... will want to see the Final HUD-1 on the sale of the property to find out the real story. If it simply reports as "paid" then lenders won't consider it a foreclosure. Further, if there are mortgage lates and/or a notation that says "notice of default" or "foreclosure proceedings started" then it would be treated as a foreclosure.
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