When a property is sold short, the seller must have held the property for a certain amount of time known as seasoning. The length of seasoning required varies from state to state, but typically ranges from 90 to 365 days.
There are a few reasons why short sale seasoning is required. First, it gives the new buyer some assurance that the property has been properly marketed and that the seller was not forced to sell short due to financial hardship. It also allows time for any pending foreclosure proceedings to run their course, so that the new owner doesn’t end up taking on someone else’s problem.
If you’re thinking about selling your house short, be sure to check your state’s regulations regarding short sale seasoning. And if you’re thinking of buying a short sale, be sure to factor in the extra time you may need to close the deal. Fannie Mae has also guidelines related to investors. They prohibit flipping houses by regulating the time that the property needs to be owned and lived in within a certain period of time.
What is the seasoning period for a short sale?
The Fannie Mae short sale season is a time-sensitive process that requires strict guidelines. The waiting period for each loan depends on the reason why it was sold, and this can be as long at four years if there’s no extenuating circumstance involved in buying back your home or refinancing with another lender institution who offers better rates than FNMA does – which probably won’t happen very often!
When it comes to short sales, there is a seasoning period that needs to be followed. This period is in place to help ensure that the homeowner has time to find a new home and leave the property before it’s sold. The length of the seasoning period will vary depending on the lender and the state you’re in, but it typically ranges from 30-90 days. During this time, the homeowner is still responsible for the mortgage payments, even if they’re not living in the home.
Can I get a mortgage 2 years after a short sale?
The following are minimum waiting periods that you should expect when applying for mortgages after short sales:
A conventional loan will require at least 20% down payment and “extenuating circumstances” leading up until the sale. You could qualify within 2 years of completing a failed investment opportunity like I did!
Can I get a VA mortgage after a short sale?
Yes, you can still get a VA mortgage after a short sale. However, there are some things that you will need to keep in mind. For example, the VA may require you to wait a certain amount of time before you can apply for a new mortgage. Additionally, they may limit the amount of money that you can borrow. You should speak with a representative from the VA to find out exactly what they will require from you.
The Pros and Cons of Getting a VA Mortgage After a Short Sale
A short sale is when the homeowner sells their house for less than what they owe on the mortgage. This can be a great option for people who are struggling to make their monthly payments but don’t want to go through the process of foreclosure.
There are a few things you should know about getting a VA mortgage after a short sale. Here are the pros and cons:
The Pros of Getting a VA Mortgage After a Short Sale
- You may be able to get a VA loan sooner than if you wait until after your foreclosure is complete.
- You may be able to buy another home sooner than if you wait until after your foreclosure is complete.
- You may be able to get a lower interest rate on your VA loan than if you wait until after your foreclosure is complete.
- The Cons of Getting a VA Mortgage After a Short Sale
- You may not be eligible for a VA loan if you have had a short sale.
- You may not be able to buy another home right away if you have had a short sale.
- You may not be able to get the same interest rate on your VA loan as if you waited until after your foreclosure was complete.