Purchase after short sale
“We were referred to Glenn for our home purchase. We had short sale two years earlier due to the combination of the economy and my wife being injured on the job, we had since stabilized our income and paid down debt and received a settlement for the injury” – Alex Lopez
Alex and Maria’s situation was tough as the guidelines for short sale less than 4 years is clear as mud. Alex was adamant that he did not want a FHA loan because the mortgage insurance is significantly higher.
After studying the FNMA, FHA and Freddie Mac seller’s servicing guides we determined that if there was a significant economic event you could purchase after a short sale with less than 20% down. We then created a loan package backing up the fact that that their income and injury did drop over 25% and it was due medical issue that resulted in 9 months off of work. When we still ran in to underwriter who felt this was not good enough we proceeded to contact management and proved that if FHA uses a 25% drop in income to define a significant economic event than the same standard would be acceptable with Freddie Mac, Vice president of underwriting, agreed. And got them their home with 10% down payment.
“We did have some rough nights but Glenn explained what was needed and why and keep reassuring us to never give up and sure enough he pulled it off and we couldn’t thank him enough. What persistence!” – Maria Lopez