My client just bought a new home two years after we did a successful short sale on his previous home. He now has a mortgage at half the interest rate he was paying previously.  His new home is  approximately half the purchase price of his old home that he purchased in 2004, and his new payments are a third of the old payments. Icing on the cake is that the new home is larger, move in ready, with a two year warranty. More icing? His new payments are $315 a month lower that his small rental.  Yes, it really is less expensive to buy than rent.

How did we do this?  Of course timing is everything.  Prices in this area are 50-60% lower than they were in 2004. There is a good inventory of homes that are reduced accordingly.  When we completed the short sale on his first home, I told him to keep the rest of his credit clean, pay the rent on time, and he would be able to buy again.  It didn't hurt that he was a V.A. buyer.  V.A. buyers can buy a home again two years after a short sale. 

Unfortunately, many figure their credit is shot anyway, so they drown their sorrow in their credit card debt.  After going through the trauma of losing their home, they may think they will never buy again.  But after living in a rental house or worse yet - an apartment, they change their mind.  The desire for home ownership is very strong and everyday I am amazed at the lengths buyers will go to in order to have their very own home.

Every situation is different.  Did you sale your home or walk away?  What is your credit and employment like? What kind of loan are you looking for FHA, VA, or conventional?  See a good loan officer who can assess your situation and give you advise on how to find your way back to home ownership again. Don't wait too long; it may take time and who knows where interest rates will be this time next year.

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  • good stuff..most people dontknow, if they short sell their house, and they have not missed any mortgage payments, they cangoandactually buy anew house right away (although if you aer short selling,most don't have enough topurchase a new house), but still,most people don't evenrealize that, and if everything else is good, and they only missed oone payment, they are able to purchase a new house within 1 year. Everyone still thinks they have to wait twoyears because the short saleis onyour record....its crazy,unfornately,what people are being told...and with,what Isuspect, short sales on the rise, well, with 50% of current homeowners underwater, per fanniemae,  I think we are about to see a huge increase in short sales..

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