From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.

BiggerPockets

General Info

BiggerPockets Q&A, Site Questions, & Announcements

1525 topics, 14456 posts — Last Post 04/24/14, 05:44AM

BiggerPockets Exclusive PRO Area

117 topics, 841 posts — Last Post 04/23/14, 08:28AM

New Member Introductions

10986 topics, 86570 posts — Last Post 04/24/14, 05:32AM

Real Estate Success Stories

399 topics, 6213 posts — Last Post 04/24/14, 01:08AM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5993 topics, 47218 posts — Last Post 04/24/14, 05:24AM

Renters

650 topics, 5861 posts — Last Post 04/23/14, 07:39PM

Get Foreclosure Help - Help Stop Foreclosure Forum

317 topics, 2561 posts — Last Post 04/23/14, 08:28PM

Home Owner Association (HOA) Issues & Problems Forum

238 topics, 1611 posts — Last Post 04/23/14, 04:02AM

Do it Yourself

658 topics, 6316 posts — Last Post 04/23/14, 09:50AM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3709 topics, 29748 posts — Last Post 04/24/14, 05:51AM

Real Estate Guru, Book & Course Reviews and Discussions

1139 topics, 11600 posts — Last Post 04/24/14, 04:53AM

Ask About A Real Estate Company

743 topics, 7344 posts — Last Post 04/22/14, 11:25PM

Real Estate Investing

Real Estate Strategies

Wholesaling

5637 topics, 43962 posts — Last Post 04/24/14, 05:22AM

Rehabbing and House Flipping

3353 topics, 31105 posts — Last Post 04/24/14, 05:49AM

Real Estate Development & New Home Construction

554 topics, 4694 posts — Last Post 04/22/14, 09:17PM

Innovative Strategies

705 topics, 6044 posts — Last Post 04/22/14, 04:06PM

Tax Liens, Notes, Paper, & Cash Flows Discussion

867 topics, 6693 posts — Last Post 04/24/14, 03:16AM

Rent to Own a.k.a. Lease Purchase, Lease Options

699 topics, 4942 posts — Last Post 04/24/14, 05:49AM

1031 Exchanges

143 topics, 1062 posts — Last Post 04/22/14, 03:21PM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1691 topics, 11313 posts — Last Post 04/22/14, 09:26PM

HUD, VA, and Tax Sales

416 topics, 3103 posts — Last Post 04/23/14, 02:29PM

REOs

1217 topics, 10603 posts — Last Post 04/23/14, 08:46PM

Short Sales

1539 topics, 13154 posts — Last Post 04/23/14, 08:25PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7252 topics, 71193 posts — Last Post 04/24/14, 05:52AM

Mobile Homes & Mobile Home Park Investing

639 topics, 5146 posts — Last Post 04/24/14, 05:13AM

Investor Basics

Starting Out

7733 topics, 60690 posts — Last Post 04/24/14, 05:41AM

Investor Psychology

431 topics, 6107 posts — Last Post 04/20/14, 06:04AM

General Real Estate Investing

4730 topics, 37326 posts — Last Post 04/24/14, 02:18AM

Real Estate Investor Marketing

1738 topics, 14148 posts — Last Post 04/23/14, 08:20PM

Commercial Real Estate

Commercial Real Estate Investing Forum

1413 topics, 9013 posts — Last Post 04/24/14, 12:59AM

Multi-Family and Apartment Investing

1123 topics, 9396 posts — Last Post 04/24/14, 05:24AM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

645 topics, 4913 posts — Last Post 04/24/14, 05:42AM

Business Basics

Goals, Business Plans & Entities

833 topics, 7585 posts — Last Post 04/23/14, 08:58PM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2802 topics, 20136 posts — Last Post 04/23/14, 06:57PM

Property Insurance

311 topics, 2057 posts — Last Post 04/23/14, 01:20PM

Personal Finance Discussion

330 topics, 2754 posts — Last Post 04/22/14, 12:06PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2852 topics, 19848 posts — Last Post 04/24/14, 02:50AM

Creative Real Estate Financing

1221 topics, 8860 posts — Last Post 04/24/14, 02:09AM

Crowdfunding Real Estate

35 topics, 463 posts — Last Post 04/19/14, 06:24PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1216 topics, 8025 posts — Last Post 04/24/14, 05:37AM

Bankers, Lenders, and Mortgage Brokers

442 topics, 1931 posts — Last Post 04/23/14, 09:04PM

Contractors

269 topics, 1690 posts — Last Post 04/22/14, 07:33AM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

2017 topics, 11758 posts — Last Post 04/23/14, 10:03PM

Americans & International Real Estate

162 topics, 572 posts — Last Post 04/24/14, 03:31AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

65 topics, 439 posts — Last Post 04/22/14, 09:27AM

Marketplace

Real Estate Marketplace

Real Estate Marketplace

15085 topics, 54135 posts — Last Post 04/24/14, 04:15AM

Real Estate Events and Happenings

168 topics, 2606 posts — Last Post 04/23/14, 10:05PM

Off-Topic

Off Topic

Off-Topic

2907 topics, 32446 posts — Last Post 04/24/14, 05:52AM

Housing News & Real Estate Market

920 topics, 8391 posts — Last Post 04/23/14, 02:43PM

BiggerPockets Real Estate Investing Summit

97 topics, 1752 posts — Last Post 04/23/14, 04:51AM

BiggerPockets Resources

Forums » Tax Liens, Notes, Paper, & Cash Flows Discussion » Does Divorce Qualify for Hardship After Shortsale

Does Divorce Qualify for Hardship After Shortsale

5 posts by 3 users

Signup

· Duluth, Minnesota


I am trying to arrange financing for my first REI, I will owner occupy the unit, it will be a multifamily house. I went through a short sale little over 2 years ago because of a divorce. I subsequently moved across the country so I could have joint custody of my children. I am trying to qualify for a FHA Loan 3.5% down. I know there rules state 3 years after a short sale to qualify. They state 2 years if you have had a "hardship."

My question is, does a divorce qualify as a hardship for FHA? Allowing my to finance after 2 years after a short sale.



· Duluth, Minnesota


Sorry, it looks like I put this under the wrong section, my first post, don't know how to re-categorize.



· West Palm Beach, Florida


Yes, a divorce will generally qualify you for a short sale (which apparently it did). FHA just wants to make sure you didn't simply do a "strategic" short sale, before they would look at you for a new loan. The 2-3 year limit is not automatic however, it's a minimum. It still depends on your current credit score/history. One of the factors will be how far behind you were at the time of the short sale. Attempting to get preapproved is the best way to find out (with tax returns, bank statements, etc., NOT with just W-2's and and an interview).



Real Estate Investor · Springfield, Missouri


FHA and secondary markets can accept divorce as a hardship in applying for new loans, if you were the respondent and lost significant income from the spouse your chances are better. And if there was a reason for the divorce beyound your control, they may ask for documentation to evaluate the situation. Other factors such as credit and ability to pay will also weigh heavily in obtaining any waiver or variance. Ask the lender how they see it, but at 97%, a few more months would probably help too.


Financexaminer@real estate investor dot com


· Duluth, Minnesota


I don't think the bank will care, but the divorce was not my choice and out of my control. I did loose significant income (my wife's salary). Was forced to relocate (leaving the house vacant) across the country, so I could be with my kids. The prior loan was VA, and paid the loan over 12 months while the house was vacant. I made improvements to the house to make it marketable (new doors, carpet, ect), and only stopped paying 2-3 months prior to the short sale closing, so the bank would consider the offer I had. Otherwise the bank would not even talk to me, literally.

My credit score is around 750 now. I can get private financing for a portion of the loan to get the LTV ratio below 80%, not sure how banks look at that? If that is something I should pursue.

The third option I have is to do all private financing, which would be 5.5% but have to pay the loan for min. of 10 years. I could still refinance, but would still have to make 10 years of payments at 5.5% to the private lender.

Anyways, I think I'll go talk to a couple of banks, and let you know what happens.





Sign up