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I Chose An Arizona Short Sale, How Long Before I Can Buy Again?

by Charlie Allred

If you have used an Arizona short sale to get our of your home, lost your home to foreclosure or filed bankruptcy, you may be wondering how long before you can buy another home, and its vitally important for you to get the facts. These numbers may vary as time passes so be sure to speak with us or contact us for the most accurate data.

The following table illustrates the estimated time line:

Item FHA Loan Conventional Loan
Short Sale See Below 2 years (must put 20% down)
Foreclosure 3 Years 5 Years
Deed In Lieu 3 Years 4 Years
Chapter 7 2 Years 4 Years
Chapter 13 1 Years 2 Years
The table above highlights the time line for receiving new loans

In addition, the following rules will apply for FHA loans after an short sale:

1) If the Borrower is not late on any credit items; and they are not short selling a HUD loan, they only have to wait one day after the close of the short sale.
2) If the Borrower is less than 120 days late on a non-HUD loan and completes a Short Sale, they must wait 1 year.
3) If the Borrower is short selling a HUD loan or is greater than 120 days late on subject mortgage, they must wait three years.

For conventional financing, it may be available after the Chapter 13 is fully paid off and after the passing of two years.

As scary as these numbers can appear, in many cases the best option if you are upside down and struggling may be to cut your losses and pursue an Arizona short sale if at all possible. Read more on the short sale process and contact us for specific information on your situation.

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{ 1 comment… read it below or add one }

Kelly Smith September 9, 2010 at 1:31 pm

Great info! I think that this shows there is life after this current market!

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