If you have decided to short sell your home or have gone through foreclosure, your credit score is not the only thing that gets affected. You will also not be able to get a loan for a certain time period. Keep in mind that these are current rules and can change at any time.
This should also be a part of your financial assessment when you determine to short sell.
If you have been foreclosed upon:
- Conventional: Cannot qualify for a mortgage for 5 years
- FHA: Cannot qualify for a mortgage for 3 years
If you have decided to short sell:
- Conventional: Cannot get a loan for 2 years
- FHA: Cannot get a loan for 3 years
That’s pretty lenient of Uncle Sam I think.
Yeah … since Fannie Mae and Freddie Mac are now owned by Uncle Sam, yes, it is lenient. We’ll see how this changes as soon as the market rebounds though.