If you live in the Ann Arbor Area, here are some new rules concerning buying a home if you have been subject to selling your home as a short sale.

Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to:

• take advantage of declining market conditions, and

• purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.

Borrowers are considered eligible for a new FHA-insured mortgage if :

• they were current on their mortgage and other installment debts at the
time of the short sale of their previously owned property, and
• the proceeds from the short sale serve as payment in full.

Borrowers in default on their mortgage at the time of the short sale (or pre-
foreclosure sale) are not eligible for a new FHA-insured mortgage for three
years from the date of the pre-foreclosure sale.  Lenders may make exceptions
to this rule under certain circumstances.

If  you have lost your job, transferred for job opportunities, or have a medical condition DO NOT WAIT to call a Realtor before you are late on your payments. There are more opportunities available if you deal with the situation up front.

Call me for a confidential discussion.