How does a short sale affect my credit rating?
According to the FHA, if the borrower was delinquent at the time of the short sale, they must wait 3 years to be eligible for an FHA mortgage in accordance with the requirements outlined in para. 2-3 (d) of the 4155.1 REV-5 Handbook. If they were current at the time of the short sale and the new lender has documentation evidencing no further liability, then they would not have to wait 3 years. The credit agency, Experian, has further information regarding credit and how a short sale can affect a borrower’s rating. The Law Offices of Michele A. Peters will work to have any deficiency waived for a primary home owner (according to law) and to have any personal liability removed — together with the short sale being recorded as a satisfied debt. ——- The Mortgage Forgiveness Debt Relief Act of 2007, includes a host of provisions not connected to mortgage forgiveness relief, but it does exclude from gross income, the discharge of “qualified principal residence indebtedness.” There are li
