Costa Mesa REO Short Sale Financing Options Update

For those hit the hardest by the recession in Costa Mesa in the past few years, there is a new light on the horizon. We are always subject to lenders' guidelines when doing a loan for a property, and the lenders are starting to loosen restrictions for those that went through a short sale or foreclosure in Costa Mesa real estate recently.

 

 

The Specifics Costa Mesa REO Short Sale Financing Options Update

Lenders can provide financing for borrowers who have experienced a foreclosure, short sale, and/or bankruptcy. The timing has been shortened from the previous three-year waiting period, and lenders can offer financing in as little as 12 months.

 

The borrower (who was foreclosed on or did a short sale in Costa Mesa) must have experienced an “economic event” that occurred outside of their control that resulted in a loss of income to the household by at least 20% and that hardship period lasted more than six months. The borrower must have fully recovered from the economic event and have maintained satisfactory credit for a minimum of 12 months.

 

Good News!

So that’s not good news, that’s great news. Those who were impacted by reduced wages, job loss, divorce, and other qualified events where you can legitimately show a hardship should have no issue with now qualifying for a mortgage within 12 months of the event.

 

Quicker

The timing for getting a new mortgage has really gotten a lot quicker. When people were first doing short sales, they were told they would not qualify for about 5 years, and 7 years on foreclosures. Most recently, the timing has been down to about 2-3 years of a waiting period, and this is certainly good news that it can be done in as little as a year.If you need help, even if it is just to run your set of circumstances past me, feel free to call me at (714) 743-9882 or email me for whatever help I can provide.