Mortgage qualifying after a credit disruption: short sale Last week, Mark Wells of Preferred Financial Services discussed guidelines affecting mortgage financing after a foreclosure. Here, he covers a short sale event. Short sales occur when borrowers are forced to sell a house for less than what they owe on it. In a short sale, the […]
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Resetting after a major credit disruption: foreclosure There are five categories of credit disruption that require waiting periods before a borrower is eligible for mortgage financing, regardless of income or credit scores. These are: Foreclosure, a deed in lieu of foreclosure, a short sale, Chapter 7 bankruptcy, and Chapter 13 bankruptcy. In this three-part series, […]
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Mortgage qualifying after a major disruption: bankruptcy For homebuyers who have a bankruptcy filing in their past, there is good news: this event will not keep them out of the housing market forever. In fact, recovery from a bankruptcy can be as soon as 2-3 years after the discharge date. Waiting periods vary depending on […]
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FHA announces reset of condominium financing On June 9, the Federal Housing Administration (FHA) announced plans to revise the approval process for individual condo loans. Previously, FHA would only finance a condo if the total complex was FHA approved. Since very few developers or HOAs wanted to go through the approval process, very few FHA […]
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Judgments and tax liens no longer to be filed with credit bureaus Starting July 1, the credit bureau system will no longer report judgments or tax liens on a consumer’s credit report. This may have a positive impact on a borrower’s ability to qualify for a mortgage, but it also has the capacity to present […]
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