Short Sale Guidelines
As most people know, there have been an unprecedented amount of short sales. This is where a seller is selling thier home for less money that they owe the bank. It is not a foreclosure, but the lender is still taking a loss on the property and has to agree to loss they are taking and the sale to the new buyer.
This of course reflects negatively on the sellers credit. In many cases the seller is behind on their payments during the time they have been trying to sell the home and can be very close to foreclosure.
Suntrust Bank - Wholesale division has just issued new guidelines to use when assisting borrowers who have had a short sale on a previously owned property.
This policy becomes effective on or after Monday, January 12, 2009.
Here are some of the highlights:
• A minimum, of two (2) years must have elapsed since the short sale occured and all of the following re-established credit guidelines must be met:
• A minimum of three (3) credit references (one must be a traditional credit reference and one must be housing related)
• No more than two (2) 30 day late payments in the 24 months preceding the loan application,
• No late payments on housing debt since completion of short sale, and
• No new public records for bankruptcies, foreclosures, deeds-in-lieu, unpaid judgments, unpaid collections, garnishments, liens, etc. since completion of short sale.
In summary, a homeowner who sold their home via a short sale process only has to wait 2 years to try to obtain new mortgage financing, but must keep thier other credit as stellar as possible.
I would be a good idea to have a two year plan to monitor your credit and make sure that you do not have any collections, liens or judgements showing up on your credit report.
If you have any questions about this or any other real estate topic just call or email me.
Sincerely,
Franziska Smith
Broker
Coastal Elite Properties
239-940-2995 cell
franziskasmith@gmail.com
Posts
No comments:
Post a Comment