Yesterday I got two inquiries from folks who were considering walking away from their current under-water homes and they wanted to know about the possibility of buying another home given the great prices we now have in many areas.

That’s a financing question, “Will lenders lend me money after I walk away?”, so I emailed a mortgage expert.

John,

Freddie Mac & Fannie Mae say that if you do a short sale, they will look at you again in two years assuming everything else is good regarding credit, income, etc. If it is a foreclosure it is 4-5 years with Freddie & Fannie from the trustee sale.

On a FHA loan it needs to be 3 years from the trustee sale & good credit thereafter.

I hope this helps,

Thank You

Lonny K. Gibson
Core Mortgage Group
15333 North Pima Road # 300
Scottsdale, Az 85260
602-321-2282

Now, there is the outside chance that you can find a seller with a home you want to buy who is willing to be the bank and finance your purchase, a “carryback” loan, but that is a deep subject.

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