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Ann Arbor Real Estate Blog

Blog about Ann Arbor and Saline Michigan

New Short Sale FHA Guidelines in Ann Arbor Area

If you live in the Ann Arbor Area, here are some new rules concerning buying a home if you have been subject to selling your home as a short sale.

Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to:

• take advantage of declining market conditions, and

• purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.

Borrowers are considered eligible for a new FHA-insured mortgage if :

• they were current on their mortgage and other installment debts at the
time of the short sale of their previously owned property, and
• the proceeds from the short sale serve as payment in full.

Borrowers in default on their mortgage at the time of the short sale (or pre-
foreclosure sale) are not eligible for a new FHA-insured mortgage for three
from the date of the pre-foreclosure sale.  Lenders may make exceptions
to this rule under certain circumstances.

If  you have lost your job, transferred for job opportunities, or have a medical condition DO NOT WAIT to call a Realtor before you are late on your payments. There are more opportunities available if you deal with the situation up front.

Call me for a confidential discussion.

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