When Can I Buy a House After a Short Sale in California

I have clients ask me all the time about the required “waiting” periods after a Costa Mesa short sale, foreclosure or bankruptcy. This is a follow up post to one I did previously a little while back. And not to go on and on about Costa Mesa short sales, but I thought you might find the following information helpful when thinking about when the time is right if you had the unfortunate luck of a past short sale, foreclosure or bankruptcy. Below are the most current Conventional and FHA guidelines regarding these situations. Additionally, for those considering a Costa Mesa short sale, 2011 is a good year to get a short sale done for many reasons.

 

Costa Mesa Short Sales – Waiting Periods

 

When Can I Buy a House After a Short Sale in California?

 

These are a general set of rules and there are certainly nuances to each circumstance, so make sure you speak to a knowledgeable lender prior to looking for a new home or call me to discuss the details:

 

*No waiting for extenuating circumstances.

 

Costa Mesa	2 years-80% max LTV	3 years from completion*
Short Sale	4 years-90% max LTV
Foreclosure	7 years from completion	3 years from completion (5 years Freddie Mac)
Bankruptcy	4 years from discharge	2 years from discharge (except 13)
Chapter 13 BK	2 years from discharge	1 year on-time payment history

 

So let’s breakdown the above info and see how it would apply to you in a Costa Mesa short sale, foreclosure, or bankruptcy situation.

 

Costa Mesa short sale: You’ve only got to wait two years if you are able to get the 20% down payment together, or 4 years if you only want to put 10% down. Or check out the FHA option- only 3 years waiting on a 3.5% down payment loan!! Not bad all things considered, especially if you bought at a time when prices were really high, like in 2006.

 

How about a foreclosure? Well, that is a tougher road- it is at least 3 years from the time of the foreclosure if you are using an FHA loan, and 7 years if you intend to use conventional financing.

 

We’ve written in the past about how important it is to do a short sale vs. a foreclosure on a past post if you are in a difficult situation on your home. It can really save a huge hit on your credit and for a much shorter time.

 

Bankruptcy? It is either 2 to 4 years depending on which type you file. Always talk with a tax professional, a legal professional, or a good Realtor to help you with advice when facing a foreclosure or considering doing a Costa Mesa Short Sale.

 

Need free advice? We would be happy to consult if you are considering it. We have a perfect record with our Costa Mesa short sales unlike other Costa Mesa firms.

Colin Delaney | (714) 743-9882 | GateHouse Properties