Posted on: 07th Apr, 2010 06:01 pm
I need to move, but financially can only afford to do so by selling my current home in a short sale. I have contacted (3) lenders whom tell me this will reflect as a foreclosure and I will not qualify for immediate approval for the purchase of another home, but I ready the FHA guidelines which state it is possible. Any ideas where to look?
Welcome bailey,
As far as I know, a short sale will not reflect in your credit report as foreclosure. However, it will definitely have negative affects on your credit report. A short sale will lower your score by 80-100 points and it will remain on your credit report for 7 years. As far as the FHA guidelines are concerned, you won't be able to get a mortgage immediately after a short sale. You'll have to wait for 2-3 years in order to qualify for a loan.
As far as I know, a short sale will not reflect in your credit report as foreclosure. However, it will definitely have negative affects on your credit report. A short sale will lower your score by 80-100 points and it will remain on your credit report for 7 years. As far as the FHA guidelines are concerned, you won't be able to get a mortgage immediately after a short sale. You'll have to wait for 2-3 years in order to qualify for a loan.
Thank you for the reply. I will need to heavily weigh my decision then.