Here in Ca we have a Short Sale and Buy Program for Homeowners with good credit & no missed payments!
Homeowner must be current on their mortgage, no missed payments.
Homeowner must have good credit, at least 580 or above.
Homeowner must have bought the home they are short selling with a conventional loan, since the loan
they will be utilizing to buy the new home will be an FHA loan.
Homeowner's new home has to be less than the purchase price of the first home.
Example: If they bought the home they are short selling for $600,000 then the home they can buy now
must be less than the original purchase price. Cannot purchase a superior property.
That's ok because most home prices are less now than what they were when these homeowners bought
them in the bubble.
New purchase must be in a commutable distance. Like over 30 miles away or more. Cannot short sell a
home in Beverly Hills and buy another one in Beverly Hills without having a good reason due to
change in family size, or job related, medical reasons, etc.
The new loan is an FHA loan using the FHA 4155 program...homeowner can put down as little as
3.5% or as much as 20% or more on this FHA loan.
This is awesome and works for homeowners that want to walk away from their debt, have good credit, have not missed payments and want to buy again asap.
You can get into escrow with the 2nd home purchase simultaneously while in escrow with the home they are shortselling. You do not have to wait until you close escrow on the home you are shortselling.
This seems to be the wave of the future for homeowners who need to short sell but would like an incentive for keeping their good credit and not missing their current home payments but who are in a financial hardship with the first home.
It's a win-win situation for everyone!