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Old 01-28-2010, 06:47 PM
 
79 posts, read 182,460 times
Reputation: 35

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I am moving down to plano and took a job that is paying me 15k more a year. But in order to take the job I have to short sell my home. I was talking to a mortgagor and he did not think it would be a problem with the short sale and buying another home. My wife and I currently have credit scores in the 800's and we were pre-approved for a home around 275k. But I am looking around 230k.

Does anyone have any experience with someone with a recent short sale buying a new home
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Old 01-28-2010, 07:48 PM
 
Location: Dallas/Fort Worth, Texas
4,207 posts, read 15,260,214 times
Reputation: 2720
Who is this mortgage person that told you that all will be ok? doing a short sale affects your credit score, not as much as a foreclosure, but it still affects your credit worthiness.

In order for your mortgage company to accept that you do a short sale on your house, you have to prove hardship. This means that something came up where you cannot afford your current payments, loss of job, pay cut, etc.

Your current mortgage company will ask for bank statements among other documents and will determine if your spendings are not over the top where you cannot afford your current mortgage.

Naima
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Old 01-28-2010, 08:45 PM
 
79 posts, read 182,460 times
Reputation: 35
my hardship is I do not live in ohio anymore, my job was talking about layoffs and I took a better job in Texas. I cannot afford my home in ohio and living in texas
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Old 01-28-2010, 10:11 PM
 
Location: On the golf course
264 posts, read 625,302 times
Reputation: 431
Quote:
Originally Posted by grumpy31700 View Post
I am moving down to plano and took a job that is paying me 15k more a year. But in order to take the job I have to short sell my home. I was talking to a mortgagor and he did not think it would be a problem with the short sale and buying another home. My wife and I currently have credit scores in the 800's and we were pre-approved for a home around 275k. But I am looking around 230k.

Does anyone have any experience with someone with a recent short sale buying a new home

Congratulations on your new job.

I highly doubt you are going to be able to qualify for a short-sale scenario based on what you have said. You said that your previous job was "talking" about layoffs...so you weren't actually laid off? There is no hardship there.

Your credit score will not be anywhere close to the 800s if your scenario goes as planned.

Were you planning on putting money down on the house you purchase in Texas?
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Old 01-29-2010, 11:13 AM
 
28 posts, read 167,164 times
Reputation: 45
I agree with the others. Hardship or not, a short sale will affect your credit either way and will definitely make purchasing another home difficult - especially given the current climate. A short sale should always be the last resort to avoid foreclosure and should be used for that purpose only. And while a short sale is slightly better for you credit than a foreclosure - it is just that - only SLIGHTLY better.

If you need to move to TX for your job (and congrats BTW) and cannot afford to own two residences until the other sells, my advice would be to rent somewhere cheap until your house sells at a price that will pay off your mortgage. You may have to live at a lower standard than you are accustomed to until your house sells, but it will be more than worth it in the long run to keep your financial life in good standing.
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Old 01-29-2010, 02:54 PM
 
28 posts, read 71,948 times
Reputation: 30
Your hardship is that you haven't thought this through Next we'll hear that you were planning to use the proceeds from the "short sale" of your other home to finance the purchase of the new one.
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Old 01-29-2010, 06:17 PM
 
3,804 posts, read 9,325,283 times
Reputation: 4978
Rent.

You don't really know the area yet, and you won't recoup if you want to sell in a year or two.
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Old 01-29-2010, 06:26 PM
 
79 posts, read 182,460 times
Reputation: 35
If they do not do a short say I abandon the home and let the bank take it in foreclosure. The bank will not want the cost of a foeclosure and will accept a short sale. The home will not sell for what the current mortage for years. I am not opposed to renting but would prefer buying and if the bank wants to play hard ball I have all the balls.
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Old 01-29-2010, 07:37 PM
 
Location: Lewisville
212 posts, read 1,154,242 times
Reputation: 133
good luck getting a new mortgage with an abandonment on your record!
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Old 01-29-2010, 07:58 PM
 
79 posts, read 182,460 times
Reputation: 35
I am not saying I will abandon I am saying I will play that card if forced to. The bank will not want another reo and will accept the short sale. I know if I let the home go to fcl it will take me a few years to get another home. I am not afraid to push back a little. If I can come out of this owing 30k to the bank and a short sale I am happy. But if I have to pay 70k+ then I will push back and take my lumps but the bank will take theirs too
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