Mortgage Expert Josh Lund chit chats about short sales, and how to qualify to buy after a short sale!

Josh Lund is a great friend of mine and contributes to the blog often. He is a mortgage expert and a fantastic resource for mortgage questions, we love him and so do many of my clients and fans of the blog. Read his chatter and call him with questions!

A short sale is a sales transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan. This is a hot topic right now as the National Association of Realtors says that in 2011 short sales will be up over 100% vs. 2010.

When you spot a short sale house that interest you, take a minute and contact a Real Estate agent. You need to understand how a short sale is different than a traditional sale and is NOT a bank owned or foreclosed home. Short sales can take anywhere from 30 – 120+ days, from start to finish. A typical transaction takes usually a few weeks to close. The banks need time to handle volume of business and time to do their due diligence on the property.

With that said, short sales are a great tool for homeowners to sell their homes when selling is a necessity. The common misconception out there is that if a home does a short sale, they need to wait 3 or 5 years before they can purchase a new home. So, many homeowners stop making mortgage payments at this point because they figure “why bother?”

American Mortgage and Equity Consultants now offers a new mortgage program where homeowners can purchase a new home after they sell their current home on a short sale! There are some catches, like being current on mortgage payments and credit score requirements, but other than that it is pretty straight forward.

Hopefully, a short sale experience is not in your future. But if it is, it is nice to know that there are options for you to continue to be a home owner even after a short sale!

American Mortgage & Equity Consultants excels and is an industry leader in short sale transactions. Josh Lund is a Senior Partner with the firm and can be contacted at josh@ameccorp.net or 612-802-3265

As always, credit questions get a hold of me, I'm always around! john@redphoenixco.com