I believe the wait period is the same for SS or FC without extenuating circumstances. Did they tell it was longer for a FC?Purchasing another home after a Short Sale....So reality check. I met with a lender today to get pre-qualified for another mortgage. I was able to confirm a previous post on this thread from another member regarding wait periods. After a short sale, without extenuating circumstances, you must wait 3 years for an FHA loan, 4 years for a conventional loan and 2 years for a VA loan. This all assumes that you don't have any extenuating circumstances. Apparently, "I'm was tired of throwing my hard earned money away and lining the pockets of BOA and GreenTree" isn't considered an extenuating circumstance. Its a great reason to strategically default, but not for getting another mortgage sooner. So we wait until August 2018 which is totally fine by me.
So while some folks will say that a short sale carries the same impact as a foreclosure, its largely true, but not 100% true. I think the primary impact is on your ability to borrow again after the event. It appears that the credit bounces back at the same rate after either event or at least that is what other members here have indicated. There is definitely longer wait periods for a new mortgage or other loans after the BK vs. the SS. I'm not 100% sure, but rates might also be impacted more by the BK.
Sorry Driftwood, I meant to type FC vs. BK. From what I understand the wait period for getting a conventional loan after FC is 7 years without extenuating circumstances vs. 4 years after a SS. The wait for an FHA appears to be 3 years following FC or SS.I believe the wait period is the same for SS or FC without extenuating circumstances. Did they tell it was longer for a FC?