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2/09/2016

Mortgage after Foreclosure


A couple of people asked me about buying a home after foreclosure or short sale. We have a loan that a yea r after the event even a Bankruptcy we can offer a mortgage. You must demonstrate you paid your rents on time past twelve months. With 12 months reserves we can loan up to 85%. OR eight percent with three months reserves

Home Again product is a great loan for Borrowers to get into the market now. 
Usual waiting periods are as follows:
Foreclosure: 7 years conventional loan, 3 years FHA 2 Years VA and 3 years USDA. 
Short Sale: 4 years conventional, 3 years FHA, no wait VA, 3 years USDA

Rates are higher on this product than government loans.

The investor expects as soon as the “waiting period” ends the loan is running off hence the higher rates. DON’T LET THIS SCARE YOU AWAY.

Sometimes paying a higher rate for THE RIGHT PROPERTY (kitchen, backyard, pool, sunset etc…) TODAY beats buying the JUST OK one in the future. Limited supply means you have to buy when the RIGHT PROPERTY comes on the market. Yes you might pay $18,000 in higher interest for 12 months (which is tax deductible). So what, it beats buying an inferior property in 12 months and having to improve it $45,000 because there is nothing on the market

There are more people in the penalty box than you think. Just because your borrower didn’t lose their primary residence doesn’t mean that pesky foreclosure on that vacation home in the desert, mountains or lake  isn’t hindering their ability to upsize or downsize.



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