Posted on: 09th May, 2009 11:14 am
I closed on my last home in October of 2008, it was a Short Sale. I am trying to purchase a home and am trying to get qualified however 3 Lenders I spoke to looked at my Credit Bureau which shows with that last Mortgage Company a notation which states, "Creditor Settled for Less than Owed" , so all 3 of thjem look at it as a Foreclosure. I am coming up on a year with my Rental and would like to move to my own home instead of signing another 1 year lease. I would like to know what I can do.
you should be ok but i would wait for a full year in your rental
Hi
A foreclosure is often considered almost similar to a foreclosure because in both the cases the creditor is settled for less than owed. You'll have to wait for at least 2 years to get a loan, be it an FHA loan or a conventional loan. You'll also have to work on improving your credit score during this time. You may get a loan within 1 year of the short sale, but you'll be charged high interest rates. So, it's better to work on your credit and wait for some time before applying for a new loan.
A foreclosure is often considered almost similar to a foreclosure because in both the cases the creditor is settled for less than owed. You'll have to wait for at least 2 years to get a loan, be it an FHA loan or a conventional loan. You'll also have to work on improving your credit score during this time. You may get a loan within 1 year of the short sale, but you'll be charged high interest rates. So, it's better to work on your credit and wait for some time before applying for a new loan.