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Keep Payments Current Until Short Sale Closing Date!

Homeowners looking to short sale their home should NOT skip or miss payments, if possible. We beat this dead horse often, but it comes up so often we want to drive home the point again.

First of all, lenders are not more likely to accept a short sale proposal if you are behind on payments. That is a myth.

And secondly, FHA now allows short-sellers to obtain financing for a new home purchase immediately after a short sale, but only if ALL payments were current. If a single payment was missed prior to the short sale, the borrowers have to wait 2 to 3 years (depending on the lender) to obtain financing again.

Note that Citi Mortgage is currently one of the only lenders that honors this new FHA rule (allowing financing after short sales). Almost all other lenders have not yet embraced the rule.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167