How will we all get home loans again?

[KC~in~Cali]

I am just sick about this whole thing!
We were NEVER late on a mortgage in over 10 yrs of homeownership, and now that we have 3 months of defaults on our credit and are about to short sale due to dh's job transfer and having to move away, it feels like we will never own a home again!

There has got to be a way to help people like us who are truly credit worthy but have gotten stuck in this housing mess. How can the housing slump be regenerated if no loans will be going back out for us to buy again, when we'll have short sales and foreclosures on our credit for the next 2-6 yrs?

Is there any hope of them easing up on the credit qualifications, especially if they can see our previous credit worthiness prior to this disaster? It won't help on the FICO score, but would help if someone took the time to eyeball our credit report to see our good history and pattern???

Any advice, ideas???
Please! I am so sad, and distraught about all of it, and since my husband makes good money, I can not see us renting for the rest of our lives.
Thank you!!!!
Kristie

[Moe Bedard]

Kristie,

If you are doing a short sale you will be able to purchase again in 2 years........which is a short time compared to the 5-7 years one would need to wait after a DIL or a Foreclosure using FannieMae or FreddieMac.

[FacingNorth]

I had read some posts by others in the Foreclosure forum that a foreclosure isn't what it used to be, and that you can now get a decent rate again after a foreclosure just 3 years later. I've been looking at the standard FHA loan requirements, and they say you can apply 3 years after foreclosure. Are standard lenders still at 5-7 years, or some also now down to 3?

Thanks.

[Deforest Cooper]

Hello All!
I listen to alot of informational CD's and i heard that the only reason a foreclosure hits your credit harder than a short sale are the lates... To my knowledge a short sale hits your credit about 100 basis points, and a foreclosure hits your credit about 130 points. Due mainly to the 30 day lates and the 120 day lates and so forth. They both say charge off on the credit report which looks the same to a lending institution when they are extending credit, so mainly what they are going to look at and what greatly affects your credit are the 30 day lates... So don't be too upset to those of you out there with a foreclosure and short sales on your credit. Even with a Bk i think you are going to be alright in the future... if the credit card companies and the big banks and lenders, want to make money by lending it out... they are going to have to change there guidlines to be able to lend to people, because there are only going to be a selected few that will still have good credit and no bk's or short sales or foreclosures. So who will they lend to??? Don't worry to much.... everything will be fine!

[Lori56]

That's the same thing I am wondering.......we had our house up for short sale for 9 mos, got 6 offers, but buyers went away after having to wait so long for the banks to respond. First mortgage with Wells and second with Citimortgage and we live in CA, We ended up having to foreclose, very depressing. Also going through Ch 7, so the past few months have been horrible, horrible. Husband unable to find a job (age discrimination?) after his business couldn't survive. We owned houses since 1999 and 700 credit scores and now we are renting again. This is by far the hardest thing I have ever went through, even a death in the family. I hope maybe 4 -5 years to buy again, after fixing up our credit? But we are surviving, what else can we do? Lots of people in the same boat...

[bigdawg50]

We have our first with Wells and 2nd with Citi also. I am trying to work with citi now since we got a mod from Wells. Hope everything works out for you. I am also looking for work without success because i think its age also. This world is a mess

[Deforest Cooper]

I am curious BigDawg50,
What kind of modification did you get threw wells fargo? 5%? 30 year fix? I/O?

[bkause]

You can wait one year and work on a 2 year Lease Option on a property that way part of your rent goes towards your down payment and you can build equity in a future purchase. You should be able to finance 3 years after the short sale.

If you keep all of your other debt obligations current your credit scores should be in top shape by that time.