Knoxville Short Sale Question: Can I Buy A Home Right Away?

house-valueIn our Ask the Expert Section, we recently received a question from Olivia, she asks, "I am doing a short sale on my Knoxville home. I bought the home back when the market was hot in 2007. I owe $40K more than what it would sell for and the house is much larger than I need now, since my kids have moved out. I managed to stay current on my Knoxville mortgage payments, even though the payments have been difficult for me to make. I want to buy a home again right after my Knoxville short sale is approved. Is that possible?" Olivia, this is a very common question that many people ask after completing a Knoxville short sale. This question can be difficult to answer because it all kind of depends on the situation. Here are a few different scenarios that influence a person's ability to buy after a Knoxville short sale. In most cases, there is some kind of wait time before you are able to buy a home again. Credit score is a large factor that will influence your ability to buy again. How much your credit score is influenced by a Knoxville short sale depends on how long you missed payments, how your short sale was reported, and if you missed other payments like credit card or car payments. There is no given number for how much a credit score with drop after a short sale, it just depends on the situation. In order to buy a Knoxville home again, you will need to have a credit score high enough to qualify for a loan. Stable income and finances will be another thing that is important in order for you to qualify to buy a Knoxville home again. A lender will want to see that you have a stable job and income to be able to afford to make your mortgage payments. They will also want to see that you have enough stashed in savings as an emergency fund. Loan types also vary in how soon they will allow you to buy a home again. With the help of the FHA's "Back to Work Program," homeowners are able to buy a  home again in as little as a year. With other loans the wait times can vary, it can be anywhere from 1 to 2 years or more before your are eligible to buy again. Talk to a loan professional to see what options you may qualify for. As far as being able to buy a home again right after a short sale, it can be somewhat difficult, since many lenders have wait times. In some rare cases, you may be able to find a local lender that keeps loans in house that will approve you for a loan. Or, you may be able to find seller willing to do owner financing. Are you underwater on your Knoxville home? Do you want to hear what options you have to avoid foreclosure? If so, please do not hesitate to give my team a call at 865-696-9002 or send an email to [email protected]. We’ve helped countless Knoxville homeowners avoid foreclosure, give us a call today for a free consultation.

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