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"If I do a Short Sale on my home, When will I be able to buy again?"

by Southern Californias Top Producing Mother & Son Te

You may be asking, as so many have already asked us, “If I do a short sale on my home, when is the soonest that I can purchase a home again.”  Ninety percent of the sales that we are doing today have been short sales in the Downey and surrounding area and each of those home owners have asked us when they will be able to buy a home again.  Of course there are so many factors that come in to play when giving someone an answer to that question but we did a little research as far as lending guidelines are concerned and we’ll shed a little light on that. 

First off, we need to remember that when a homeowner is doing a short sale on their home, they’ve hired a real estate agent to begin the marketing process on their home, but the homeowner is in financial hardship and therefore may not be making the payment on their home.  If the homeowner is not making the payment on their home, it is affecting their credit.  The bank does not dismiss those missed payments.  This is why it is crucial to begin the short sale process if you know that you are in such a hardship that the bank will not allow you to remain with the property.  Some sellers that we speak with want to stay in the property so badly and unfortunately are so desperate that they are trying to remain in the property even though the bank has told them that they will not allow them a modification on their loan.  When a seller continues the waiting process, and they are still waiting to sell their home, their credit is getting worse and worse as the months pass. 

Now to answer the question of when you can buy a home if you do a short sale…  FHA guidelines state that a person cannot buy a home until 3 years from the date of the short sale of their home.  You may be asking, “Why should I consider a short sale if that’s the case?”  Well, you can buy much sooner if you do a short sale then if you have a foreclosure on your record.  The Foreclosure will stay on a person’s record for at least 7-10 years.  It’s going to be very difficult for a person to buy a home and get appealing interest rates and loan terms when a foreclosure is showing on their record. 

No matter which way you spin it, a short sale is the best option for a homeowner and the sooner a person realizes that they are unable to afford their home any longer, the better it is for them to begin the short sale process so that there is less damage to their credit, and their recovery is much sooner.

If you or anyone that you know is in financial hardship and you foresee a time coming where your savings is going to be drained maintaining the payments on your home, definitely give us a call so we can help and guide you through the best option for you and your family. 

March Local Real Estate Report-Home Values Stable!

by Southern Californias Top Producing Mother & Son Te

We now have the first two months of data showing us how real estate has performed thus far in 2011.  As has been the case, at least for the past 2 years, property values decline in December and then rebound in the following months of January and February.  Overall home values are lower now than they have been for the majority of 2010 but if we look at the big picture, real estate has not taken a drastic turn for the worst as was the case in the later part of 2008. 

The average sales price for January was $311,775 and for February the average sales price was $312,609.  If you are in the market to buy right now, we urge you not to wait too much longer.  30 Yr Fixed interest rates are currently at 4.85% which is low compared to what rates were a few years ago.  In the last 3 months alone rates have already increased almost 14% higher than where they were in November of 2010.  There’s always talk of rates going up again and as you can already see from the graph above showing the past 6 months of interest rates across California, rates have definitely gone up.  So please don’t wait any longer.  Take advantage of this great buyers market.  Take a look at our Listings here

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Contact Information

Photo of The Mother & Son Team - Maria Palacios & Chris Gon Real Estate
The Mother & Son Team - Maria Palacios & Chris Gon
Berkshire Hathaway HomeServices, California Properties
16911 Bellflower Blvd
Bellflower CA 90706
(877) 883-1003
Fax: 562-381-9113