Short sale rules are changing all the time. Here are some new tidbits that may be of interest to you: 1) Effective June 2012, lenders must provide a response within 30 days of receiving a short sale offer if the loan is backed by Freddie Mac or Fannie Mae, or is subject to the Home Affordable Foreclosure Alternatives Act (HAFA). Also, those lenders must make a final decision within 60 days. 2) HAFA is no longer limited to owner-occupied homes. Certain investment properties may qualify under HAFA as well. 3) Homeowners who are in the military, and need to move quickly as a result of receiving new orders, can qualify for short sale assistance automatically if their loans are backed by Fannie Mae or Freddie Mac, and if they owe more than their home is worth.
Can you buy another home if you have gone through the foreclosure or short sale process? Well, it’s not going to be easy, especially if you need financing. But the Federal Housing Administration has some programs that could help you out. You could qualify for an FHA loan if you meet various criteria. For example: 1) It has been at least three years since you have owned any real estate that was foreclosed (including regular foreclosures and deed-in-lieu transactions). 2) You did a short sale, but you were current in your mortgage payments for the 12 months leading up to your short sale. 3) You did a short sale, and you were current on all installment payments (i.e. credit cards, etc.) for the 12 months leading up to your short sale. On the other hand, you would be ineligible for an FHA loan if you fall in one of the following categories:… read more →
Usually, when I represent someone purchasing commercial property, an apartment building, or a single-family home, I don’t have to worry about ordering a survey. That’s the seller’s job. But with more and more of my clients purchasing real estate that has been foreclosed directly from the bank, I find myself advising my clients to obtain surveys before closing. Why? Many bank-owners of foreclosed property don’t provide surveys as part of their agreement with the buyer. As a result, something that the buyer did not anticipate having to pay for becomes an additional expense. Surveys range in price from a few hundred dollars for residential property to thousands of dollars for large parcels of commercial property. But really, you should get that survey. Why? Here are a few reasons: 1) You may not be able to purchase the property without a survey even if you are willing to. Many lenders require… read more →
It’s become harder and harder to find a condo that is eligible for FHA financing. Just when everything seems okay, the buyer finds out the association doesn’t have enough reserves. Or perhaps, the association has too many commercial units, like a shopping center on the first floor. Or maybe, too may homeowners in the association have been hit hard and are no longer making assessment payments. When these things happen, the unit becomes ineligible for FHA financing, sometimes dashing the buyer’s — and the seller’s — dreams of a purchase or sale. The good news is, the FHA finally revised its rules for condominium financing, making it a little bit easier to get approved for an FHA loan. For example: 1) If you are buying a residential unit in a condominium building where up to 50% of the space is allocated for commercial use, you can still qualify. Previously, the… read more →