A short sale of your house is not the end of your ability to buy a home again. Clean up your credit, pay your bills on time, and gather a good down payment and you might just find a lender who will give you a loan for your new house.
Baton Rouge Short Sale Help: Short sales are not the greatest way to sell a house, but sometimes sellers find it necessary when time is running short and they prefer not to fall all the way through the foreclosure net. Some have lost jobs and must relocate to find gainful employment once again, leaving their unsold home to be sold as a short sale. Whatever the reason, it certainly isn’t as ideal as selling the house and having enough to pay off the mortgage and a little profit in the pocket. When it becomes necessary, though, it isn’t the end of the world and it is indeed better than going into default and foreclosure.
A short sale will still leave you with some options for obtaining another loan to buy again depending on your new circumstances. While you may end up paying a higher interest rate on a mortgage and might need to pay PMI insurance the fact remains that you will most likely be able to buy instead of renting.
When you determine that you need to short sale your house, be sure to pay your mortgage payments on time every month until it is sold and gone through closing.
If you can wait until your financial situation is in better shape you will be able to get a loan at a decent interest rate. Pay all of your bills on time, keep your steady job, find ways to increase your income, and do your best to clean up your credit. The smaller interest rate will mean that you will be paying less each month for your home, as opposed to paying more for it because the bank is a bit nervous about your ability to pay the loan off.
When you determine that you need to short sale your house, be sure to pay your mortgage payments on time every month until it is sold and gone through closing. Be prepared to show good cause for the short sale. A transfer or other job move, a death in the immediate family that affected the ability to pay, a debilitating illness or an accident with serious injury are all reasons the bank would consider reasonable for you to sell on a short sale. They are also temporary reasons.
Banks realize that everyone goes through bumps in life. As long as those bumps are temporary and don’t involve a pattern of overspending and losing job after job, you may be able to buy a new home after you have had to sell your current one as a short sale. Have a good sized down payment, adequate income, and good recent credit and bill paying history and you should be eligible for a new loan.
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