How long does Short Sale stay on your record?

Question

Its been 6 years now since my Short Sale.

I was trying to refinance the home that I have now. The loan agent said that because 7 years hasn't gone by yet, that it is still on my record. I would have to pay higher than normal for a loan.  Is he right?

Account Closed · Answer

usually 2  years for fha and 4 years for conventional

Debra Minnich · Answer

@Ham Merritt -  yes in the Cleveland area.

Ham Merritt · Answer

@Louie Salazar Fannie & Freddie is 4 years, HUD is 3 years. There are circumstances that would permit shorter seasoning periods if an extenuating circumstance existed. If your going the conventional lending route, these guides will apply. 7 years is for a foreclosure on a fannie/freddie loan. FHA is different. Did you foreclose or short sale? If you foreclose then the lender is correct for the conventional loan. HUD would be different for an FHA loan, 3 years instead of the 7. My guess is that the lender you spoke with does not have access to FHA product. I would keep looking as a short sale or foreclosure with a seasoning period of 6 years can be done with FHA. There are also wholesale products available that have as little as 1 day seasoning for short sales. @Debra Minnich are you looking for financing in Ohio?

Debra Minnich · Answer

@Chris Mason do you loan in Ohio? What if you were delinquent on the mortgage before the sale?

Minna Reid · Answer

Hey Chris - Is that a California only product? Who backs the product?

Chris Mason · Answer

We've been doing 30YF mortgages with no seasoning period following short sale for some time now, with normal rates. FICO adjusters will still apply, if relevant.

Brett Goldsmith · Answer

You may want to speak to other lenders but depending on your credit he may be right. I was under the impression that a short sale should affect you for less than 7 years as a negative for future financing if all a borrowers other ducks are in order.