What is the Waiting Period After a Short Sale?

The waiting period between concluding a short sale and buying a new home depends on the type of loan that was taken out.

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How long is the waiting period after a short sale before you can buy again? A short sale, for those who don’t know, means selling a property for less than what’s owed on it.

The answer depends on the type of loan you plan on taking out and whether it’s government-funded or insured by Fannie Mae. Fannie Mae takes longer, at least four years. There are extenuating circumstances where you can get it done in two years, but it can be very difficult to prove extenuating circumstances to an underwriter.

On a government basis, the waiting period is typically three years. Depending on your mortgage history, there are also situations where you can get it done sooner than three years.

How long you have to wait depends on what type of loan you take out.

From a credit repair standpoint, it would be wise to talk to a loan consultant like David before getting everything together. That way you’ll know what to expect down the road before you actually go through with the short sale and how long you can expect to wait afterward. It’s also important to keep the mortgage up-to-date and on time.

On a conventional basis, foreclosures usually take seven years. If you’d like to expedite that time period down to four years, there are guidelines you have to adhere to on a Fannie Mae basis, such as a higher down payment and a higher credit score. On an FHA basis, you can do it after three years.

For a full breakdown on the waiting period after a short sale, click here. 

If you have any questions regarding today’s topic, please feel free to give me a call or send me an email. I’d be happy to help you in any way I can.

4 Ways to Make Your Luxury Home Stand Out

How can you draw more buyers to your home if you are in the luxury market? We have four tips to help make your home appeal to more buyers.

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A lot of sellers want to know how to attract more luxury buyers into their homes. Which amenities should you include? We have four ways you can attract more buyers to your luxury home.

The first thing we recommend is creating an outdoor living space. Add an outdoor kitchen or fire pit and make sure there are enough areas for lounging and sun protection. You can also add a lush garden. If you have an old, blue pool, consider installing a more natural-looking pool. Natural pools are very attractive to buyers.

You should also pay attention to smart home features. Get the Nest thermostat to automatically adjust the temperature in your room. You can also get smart refrigerators that will alert you when your groceries are running low or about to expire. There are ovens available that can turn on automatically and adjust the temperature when you’re ready to cook. Security systems that connect to your smartphone are all the rage; you can make sure your doors are locked and the garage door is shut from across the country.

Luxury buyers are looking for outdoor living spaces and glamorous bathrooms.

If your home has an old wine cellar, you need to upgrade that. Old fashioned, dusty wine cellars are out. These days, luxury buyers are more interested in wine tasting rooms. Install a small, cozy fireplace, a bar, and make sure there is an area for guests to relax and enjoy some wine.

Finally, glamorize the bathroom. The European body spray shower is very popular these days, as are exposed stone tiles in the shower area. Make sure you get a rain showerhead; all of the five-star hotels have them and they will definitely appeal to buyers.

These four things will help your luxury home sell to quality buyers. If you have any questions for David, you can call him at 708-705-7911 or email him at Dave.Bowen@imortgage.com. If you have any other questions about preparing your luxury home for the market, give me a call or send me an email. I would be happy to help you!