That is going to be the question for the next 5-10 years of this housing market in AZ. The cycle began in 2007. Foreclosures on adjustable subprime arms (option ARMS, stated incomes, no docs) were the first to go. In 2008 the economic downturn became apparent and we saw A paper ARMS defaulting because they could not get out of their loans and didn’t have the income to support. 2009 saw the beginnings of the strategic defualt, where people who actually could pay their mortgage were so upside down that they made a business decision to walk away rather then continue to pay on a bad asset. 2010 and 2011 Arizona saw the rise of shortsales, where the banks had seemingly figured a way to stop the bleeding in their portfolios. We expect this to be the trend of the foreseeable future in Arizona. From 2007 to today we have seen a massive amount of people lose their home to foreclosure or shortsale for one reason or another.
So now the question becomes, when can I buy agian after my shortsale or foreclosure in AZ? It is an interesting dynamic- everyone I speak to with this situation has a different story to tell. The bank guidelines are simple. 3yrs after a foreclosure or shortsale for a new FHA loan. 2yrs with 20% down on a conventional loan after a shortsale and 7yrs on a conventional loan after a foreclosure. 2yrs for a VA loan for either a shortsale or foreclosure. Now these are the basics, and as I said earlier, everyone has a different tale associated with their situation. You still need to be approved, your dates must match (IE you may think you foreclosed in 7/2009- but the bank really didn’t get around to foreclosing on you paperwork wise and officially until 10/2009), and you may have some work to do to repair your credit. This will require effort for the new buyers to be. The days of waking up and deciding it might be time for a new house- the way alot of us Arizonians did in the past- are over. You need a top notch team behind you in these interesting times, which of course is where Stacie Kvanvig comes in. She is fantastic to work with, and I’m not just saying that because I’m on her site. Call her and find out for yourself 602-295-3190.
So when can you buy again after your shortsale or foreclosure in AZ? The answer is: it depends. Call Stacie and find out. But, find out soon because there are alot of of you out there and you will all be coming at once- guess what, we don’t have enough houses. To quote the movie Jaws- we’re going to need a bigger boat!
Joe Smith
South Pacific Financial Corp
602-741-4121 Phone
joesmith@spfcnet.com
Tweet me at @joesmithmtg