Private Financing Option for Short Sale or Foreclosure

November 30, 2011 at 7:58 am 1 comment

By: Maria Hass
I’ve received many calls from clients and their friends asking about the possibility of owning a home after a short sale or foreclosure. Below, I have outlined below the average waiting periods for a short sale, foreclosure and bankruptcy. Every situation is different, so consult with a knowledgeable lender if you would like to know what it takes to get into a home sooner.
1. Short sale – Anywhere from two to three years from the time title was transferred to the new owner.
2. Foreclosure – Anywhere from two to seven years from the time the home was transferred to the new owner, whether the home was returned to the bank or a third party bought it at the auction.
3. Bankruptcy – At least two years from discharge.

Note: Waiting periods vary depending on your reason for default, your current credit score, the down payment on the new home, your income, the type of loan and most important, the lender you select to do your new loan. Sometimes, one lender maybe able to approve you for a loan while another will not. To better prepare you in buying your next home after foreclosure, short sale or bankruptcy, it is a good idea to connect with a credit repair consultant and find out what it takes to improve your credit sooner. If you would rather get in a home sooner than the typical waiting period, you may look into “private financing.” Lenders who loan money this way do not have a “waiting period” like the big lenders do (Wells Fargo, Chase, Bank of America, etc.). Private lenders require at least 30 percent down payment and the interest rate is higher, at 11 percent or more. But you can close the transaction in two weeks. There is no prepayment penalty in most private financing, so you can pay off the loan sooner or refinance later with a regular government-regulated bank at a lower rate once your waiting period is over.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate. Tags: , , .

Why is Today’s Real Estate Market a Good Investment? FHA Loan Limit Increase and Today’s Interest Rates in Arizona

1 Comment Add your own

  • 1. HIGHLAND SHORT SALE AGENTS HELP AVOID FORECLOSURE  |  November 30, 2011 at 11:46 pm

    […] Note: Waiting periods vary depending on your reason for default, your current credit score, the down payment on the new home, your income, the type of loan and most important, the lender you select to do your new loan. Sometimes, one lender maybe able to approve you for a loan while another will not. To better prepare you in buying your next home after foreclosure, short sale or bankruptcy, it is a good idea to connect with a credit repair consultant and find out what it takes to improve your credit sooner. If you would rather get in a home sooner than the typical waiting period, you may look into “private financing.” Lenders who loan money this way do not have a “waiting period” like the big lenders do (Wells Fargo, Chase, Bank of America, etc.). Private lenders require at least 30 percent down payment and the interest rate is higher, at 11 percent or more. But you can close the transaction in two weeks. There is no prepayment penalty in most private financing, so you can pay off the loan sooner or refinance later with a regular government-regulated bank at a lower rate once your waiting period is over.Source: wordpress.com […]

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Categories

Feeds


%d bloggers like this: