Super Fitness Health BlogHow soon may somebody own a property or home again after selling a home as a short sale?
There was a time when not everybody had heard of a “short sale,” much less experienced one firsthand. Currently, with the mortgage crisis going on for many years, and the economy remaining slow, it’s nearly a household phrase.
Society has changed, and large numbers of home-owners have sold their family home through a short sale. As a result, consumers want to know how soon they can buy a property following a short sale, because their lives are financially sound again and they want to take advantage of presently low prices.
There happens to be quite a bit of hype and misconceptions about the ramifications of selling your home through a short sale, but the answer basically is very simple: You can get a residence again commonly a couple of years after short selling your previous dwelling. Scenarios vary, and there isn’t a definite rule, but it is feasible by law to achieve it.
As a way to have the best chance of buying a home again after two years have passed from your short sale, you need to follow some very simple tips to getting your credit back in shape.
First, you should make sure your credit profile reads the house loan on your house was “Satisfied.” Legally, it was, even if they took less than the amount borrowed, because they accepted the offer. The bank could have said ‘no’ and foreclosed on the property.
Second, be certain you pay all loan payments by the due date without exception. Regardless of what charge cards you may have, pay them conscientiously (then pay them down as soon as possible!).
Third, always make sure your debt to credit limit ratio on any given credit line, and on all lines of credit combined, is lower than 50%. This illustrates you are a good credit risk and do not ever take on too much debt.
Fourth, hold on to at least three trade lines of credit. A trade line is a category of credit, like a car payment vs. a credit card vs. a cell phone. Cell phone accounts are legitimate trade lines, as are college loans, and any personal debt. You should demonstrate a balance between opening and managing credit accounts and paying them down so you don’t end up being loaded down with debt.
And fifth, check your credit a long time before you submit an application for a mortgage to help you find any irregularities and get them fixed. You shouldn’t use expensive “credit restoration” schemes. Just get your financial circumstances in order and always keep them this way and your fico scores will represent your credit worthiness.
Mr. Harper is an author and consultant focusing on topics such as Portland real estate, Albuquerque real estate, and other real estate topics. He publishes a free ezine on real estate marketing tips to help small business clients succeed.
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