An agent said it yesterday, and I talked to a loan rep who confirmed it.
FHA has expanded their underwriting guidelines for those who have a short sale on their record.
They already allow borrowers to come back three years after a foreclosure or short sale, but now there is an additional option.
People who have short-sold their previous home can now buy their next home immediately, rather than having to wait 2-3 years, as long as:
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They have a legitimate hardship,
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Have made their last 12 months of mortgage payments on time, and
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They “aren’t taking advantage of the market”, meaning that they aren’t buying a much more-expensive home.
The thought of convincing the existing lender to approve a short sale when the borrower is current on payments sounds a bit daunting, but the loan rep said that they have closed several of these already!
No more buy & bail?
Bail & buy!
LOL – that’s what it is, the “Bail and Buy” program!
So, is this the program that will allow distressed neighborhood to short sell and buy each other’s property? It seems like a creative version of principal reduction program in disguise.
Wow, just wow! I even saw a house advertisement with 100% financing available on OAC* the other day. I thought that wasn’t possible anymore…
In order to maintain wealth based on debt you got to get more people in debt. They’ll try just about anything to keep the average person in debt for a lifetime.
I think it’s an excellent idea and program
Sometimes you just wonder who this program would even apply too. The only area I can think of is moving for a job. I.e. you’re Miltary in San Diego, you bought a house, it’s underwater and you’re being re stationed to Virgina. YOu’re current on payments because you still have a job but your hardship is you have to move for that job. Now that you’re in Virgina you decide you want to buy again because maybe this time it will appreciate before you have to move again.
I guess I question the logic of why somebody who’s in that position would want to buy immediately again or why the government should provide financing for that decision.
Can anybody else think of another reasonable hardship situation where this would apply? I can think of plenty of scam type situations where this would be attempted, but not many legitimate ones.
This is sick and disgusting.
FHA is financially encouraging homeowners to bail and buy.
When gov removes the repercussions for stealing. Don’t be surprised when everyone becomes a thief.
Oh well… At least it’s going to keep house values up as more unqualified deadbeats are able to compete to buy. I feel sorry for anyone that’s actually saved up a 20% down that has to compete with the credit monkeys when buying a house.
Hi: Thank you for applying for the Union-Tribune’s first real estate panel. We apologize for the delay. We received an overwhelming response for only 11 spots.
At this time, you have not been selected for the panel.
However, we encourage you to apply again down the road. To keep the group fresh, we anticipate adding new voices along the way. If you’re interested, we would like to keep you as a possible resource for any local real estate stories.
We appreciate your patience, Lily LeungOn behalf of the Union-Tribune business desk
You don’t advertise enough with the UT. When the panel comes out, correlate the people on it with the firms that run full page Sunday ads, I bet you see some fascinating results.
“At this time, you have not been selected for the panel.”
Ha! Obviously, JtR, the SD Union-Tribune “can’t handle the truth”…
I bet bubbleinfo.com gets more traffic in one day than the UT’s Real Estate section gets in a week maybe even a month.
If people are selling short, where does the money come from for the new down payment?