Posted on: 08th Jan, 2009 12:11 pm
Can any body tell me how many years have to pass before I can buy a house after I loose my house in a short sale or Foreclousure?
Hi Lsanchez!
Welcome to forums!
As far as short sale is concerned, it will lower your credit by 75-100 points, but I don't think it will lower your chances for getting a loan to buy a house.
As far as foreclosure is concerned, it remains on your credit report for 5 years from completion date. In between 5 to 7 years, you will only be able to purchase a personal residence. Also you should have a minimum of 10% down and a good credit score. Also you can only do limited cash-out; no regular cash-outs are permitted. After 7 years you can get normal rates and terms for getting a mortgage.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
As far as short sale is concerned, it will lower your credit by 75-100 points, but I don't think it will lower your chances for getting a loan to buy a house.
As far as foreclosure is concerned, it remains on your credit report for 5 years from completion date. In between 5 to 7 years, you will only be able to purchase a personal residence. Also you should have a minimum of 10% down and a good credit score. Also you can only do limited cash-out; no regular cash-outs are permitted. After 7 years you can get normal rates and terms for getting a mortgage.
Feel free to ask if you have further queries.
Sussane
Hello, I just short saled my house last month.. Would be interested to know the same. My credit already dropped by 70 points due to not paying 4 months of mortgage payments. Will it drop by another 70-100 points due to short sale?
Yes, I think your credit score will drop further by 80-100 points after the short sale.