Short Sale Question

[Tryingagain]

Does having a short sale add time to the timeline of being post BK for a new mortgage? We are VA and USDA Guaranteed eligible and are 1 month from our 2 year mark. Thanks!

[HHM]

If you were in default on your mortgage payments prior to the short sale, then the guidelines treat it just like a foreclosure, the timeline is 3 years (at least for FHA). Not sure on VA or USDA. If you were not in default on your mortgage payments, then the BK time frame would control.

[Tryingagain]

We were in default because of their modification process taking forever and their other shenanigans. They wouldn't accept payments and kept losing paperwork/ talk to this person etc. They were our reason for filing BK. Would it show up during a search or would we have to disclose? I thought that a short sale was better than a foreclosure.

[HHM]

Then, sorry to say, the short sale will be treated like a foreclosure, and you will most likely be subject to whatever time frame is used for foreclosure (3 years) and that time frame would START from the date your house sold. But, like I said, I am not 100% sure how VA and USDA treat it, but pretty much FHA, VA, and USDA use the same guidelines.

[tobee43]

just a note: from what i know (since we just tried to co-sign my daughters new mortgage) the VA and the USDA, do in fact, treat the process just the same way as the FHA.