Massachusetts Real Estate


Getting a Mortgage After a Short Sale

Original article source: Massachusetts Real Estate Blog

Getting a mortgage after short saleAs a Realtor who has been heavily involved closing Massachusetts short sales over the last five years, one of the questions that I get asked quite often from home sellers is how long will it take before I will be able to buy a home again.

Of course what people really mean is how long before I will be able to get another mortgage.

The answer to this question does not have any clear cut and dry answer. There are quite a few variables involved when trying to figure out when someone will be able to purchase a home after a foreclosure or short sale.

Going through either a short sale or a foreclosure has the potential to seriously impact ones credit.  Government entities Fannie Mae, Freddie Mac and FHA do not directly loan money to individuals but are the governing body that work with lenders to guarantee loans and free up money to provide mortgages.

Banks typically have the authority to lend to whoever they want but will generally follow the guidelines set forth by these entities. There are some lenders of course that will take greater risks with some borrowers than others.

In the link provided below the general guidelines that FHA, Fannie Mae and Freddie Mac follow when considering a loan after a short sale or foreclosure are discussed.

See Getting a mortgage after short sale and foreclosure for a complete understanding of how your credit will be impacted, as well as the time period before a borrower will be able to get financing to purchase another home under these scenarios.

The credit impact of both short sales and foreclosures are explained in depth. There is also a comparison between FHA, Fannie Mae and Freddie Mac loans. There is a lot of misinformation online about the difference in credit impact between a short sale and foreclosure.

There are many that try to paint a picture that the credit impact of a short sale is far less damaging to ones credit when that is in fact not the case. The benefit in a short sale lies more in the fact that you may be able to get a mortgage quicker in the future. Credit scoring with missed payments is nearly identical when comparing short sales and foreclosures according to MY FICO.


About the Author: The above Real Estate information on Getting a mortgage after a short sale was provided by BillRE/MAX Executive Realty Metrowest Massachusetts Gassett, a Nationally recognized leader in his field. Bill can be reached via email at or by phone at 508-435-5356.

Have a home to sell in Metrowest Mass? I have a passion for Real Estate and love to share my marketing expertise!

For Massachusetts Real Estate information see Massachusetts Real Estate. Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at my MLS Property Finder Site.

I service Real Estate short sales in the following towns in and around Metrowest Massachusetts: Hopkinton, Milford, Upton, Bellingham, Southboro, Westboro, Ashland, Holliston, Mendon, Northboro, Shrewsbury, Hopedale, Medway, Grafton, Northbridge, Uxbridge, Franklin, Framingham, Natick and Douglas MA.


Building lasting relationships by helping people move in and out of Metrowest Massachusetts for the last 25 years.

Bill Gassett is a thirty-two year veteran to the real estate industry. He enjoys providing helpful information to buyers, sellers and fellow real estate agents to make sound decisions. His work has been featured on RIS Media, National Association of Realtors, Inman News, Placester, RESAAS, Credit Sesame and others.

Comment balloon 53 commentsBill Gassett • March 23 2011 07:52AM
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