If your payments have never fallen behind 30 days late and the lender does not require the loan, Fannie Mae guidelines may allow you to buy another home immediately. The wait for an FHA Loan is 3 years. If your payments are in arrears yet a short sale is granted by your lender, you may qualify to buy another home with a Fannie Mae backed mortgage within 2 years, regardless of whether the home is your primary residence.
With certain restrictions, you may be eligible to buy another home in 5 years if the home was your primary residence. Without restrictions, the wait is 7 years. If you are an investor and do not occupy the home, the wait to buy with a Fannie May loan is 7 years.
A Short sale is not a derogatory mark on your credit because credit bureaus do not show the word "short sale" on your credit report. It may say "pay as agreed" or "Paid as less than agreed", among other categories. Some clients have reported negative FICO score drops from 50 points to 130 points. The point drop is typically due to default, that is behind on your payments.
A number of sources have reported FICO score drops from 200 to 400 points after a foreclosure. Generally this credit score will remain on your credit report as a public record for 10 years.
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