Comments on: How soon after a short sale are you able to purchase a new home?

By: My Take on It

My Take on It — Thu, 04 Mar 2010 16:52:16 +0000

That 100k would be forgiven by the bank, if FL is a non recourse state, and they would most likely send you a 1099 that you would have to claim on your taxes. That means you get to pay tax on 100k.

You sure you want to do a short sale now? LOL

After a short sale, you will have about 3 years before you can get another mortgage. During that time, you will need to get your credit score back up and have a perfect rental history with no late payments.

You won’t be buying right away.

By: Simpson G

Simpson G — Thu, 04 Mar 2010 16:06:18 +0000

If you have the cash, you can buy a new home immediately.

However, if you are held liable for your loan and ‘default’ on it, you can lose up to 300 credit points and will have problems buying a home for potentially 5-7 years.

Whether or not the bank writes off the $100k is up to the bank.

By: Jeanne R

Jeanne R — Thu, 04 Mar 2010 15:29:46 +0000

If you can get your mortgage company to do a “non recourse” short sale, then you will not owe the difference between the sale price and the mortgage balance. However if the short sale is a “recourse” short sale, then you will owe the difference. I believe that it will be about 2-3 years before you would be able to buy another home. You should check with lenders in your area because in some localities it is a shorter waiting time and in others it is longer.

By: Billy Cunningham

Billy Cunningham — Thu, 04 Mar 2010 14:40:34 +0000

yes, you would probably have to declare bankruptcy

By: chatsplas

chatsplas — Thu, 04 Mar 2010 14:31:59 +0000

3-5 years at earliest
could be tax consequences, if it’s not principal residence for x years
your credit takes a hit
need a down payment

Generally better to stick it out and wait for market to recover if you don’t have to do this