How long do I have to wait to buy after my short sale or foreclosure?
There are different loans and time limits but figure 4 years on most loans. The waiting period is 3 years on FHA and USDA loans. For a new VA loan you only need to wait 2 years. There some shorter periods for a verified hardship. You will want to talk with a qualified lender about this.
If you complete a short sale on a VA loan, the balance that was paid out by the VA must be repaid before you can get another VA loan. There is a more complicated formula involving how much of your entitlement you have remaining, if any, since some will be tied up by the short sale (or foreclosure). Please see my page about VA loans.
What’s a Probate Sale?
A Probate Sale occurs when someone dies, without a Trust, and leaves property that must be sold. Probate sales traditionally occur when the deceased did not put their properties in a trust and did not name a specific person or entity to inherit the property however this is a very simple description of a detailed legal process.
You could be the successful bidder for a property that is sold through the probate court. Court mandated requirements make this process more exacting and detailed and some buyers do not want to participate in the probate sale process. Many, but not all, properties sold at probate sales are fixers.
Are Fixer Uppers worth the trouble?
A. Perhaps you are willing to buy a property with an outdated floor plan, structural problems or other significant issues. Serious construction defects definitely narrow the field of potential buyers. If you are willing to buy a property that looks horrible but has great potential, you will have a considerably smaller group of competitive buyers to contend with. The reduced sales price for a fixer may, or may not, make sense if you are going to spend significant money to remodel. Properties in impeccable, move-in condition command a premium.