Florida real estate Buyers with a Short
Sale in their history
Florida real estate buyers with a previous short sale in their past
should make sure the information was reported accurately before applying
for a mortgage. Make it a point to review your credit report.
There are times where a short sale appears incorrectly on credit reports
as a foreclosure. It will prevent a buyer from obtaining a new mortgage
because it is one of the lenders red flags.
Contact the creditor and offer to send them a final settlement statement
which proves that the previous property was a short sale. Include a copy
of the grant deed transferring the property from them to the buyer.
Settled for less than full balance - that is how lenders should report a
short sale in a credit report.
It is their responsibility to report it accurately to the credit
A short sale borrower should be eligible for a conventional loan 2 years
after a short sale at 80 percent loan to value ratio or even lower.
Regarding a foreclosure, the prospective real estate buyer may have to
wait up to 7 years to be eligible for a conventional loan. However, if
it can be documents that the foreclosure was a one time economic
hardship the wait time is reduced to 4 years.
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