Dear Sue,
I have a question for you.
My daughter and her husband were transferred to Southern California last year. They have just been transferred back.
My daughter’s husband works for the California Highway Patrol and will most likely be working at the Capitol.
When they were originally transferred from Roseville to Southern California, they were upside-down in their home but they still tried to keep it.
As time went on they eventually had to short sell. They couldn’t afford to keep it because they were without renters for several months. Their credit is perfect except for the short sale.
There are no conventional lenders out there that will lend to them for two years from the close of escrow on the short sale.
My question to you is do you know any people out there doing private money short-term loans?
They are hoping to buy a home in Roseville again. They should be able to refinance out of a private loan within 18 months or so.
Needless to say their income is stable and they are more than qualified to buy again.
Their situation was brought on by the CHP relocating them to Southern California and the market being crazy at that very moment.
I really want my daughter and her family near me. I want to help them find financing so they can buy a home and settle down.
I understand it’s a crazy question, but honestly I’m trying every avenue I can think of to help. Any thoughts or suggestions you might have — I’m all ears.
Thank you for listening.
~ Eager Mom
Dear Mom,
Your daughter is very lucky to have you as a mother.
I called Ryan Rivera at Gold Mine Financial. He told me that it was Freddie Mac and Fannie Mae, not the lenders that had the two-year rule on short sales.
Fannie and Freddie will not purchase a loan from a lender if the borrower has had a short sale within the last two years.
This limits the borrower’s ability to get a loan since most of the loans made by the banks are sold to Freddie or Fannie.
Rivera suggested that your daughter apply to a lender that will keep the loan in house. This is known as a portfolio loan.
It’s estimated that about one third of eligible homebuyers will be kept out of the home buying market if the two-year rule stays in effect. Rivera said that it was a very hot topic at the moment.
He also said that there’s talk of a new financing program that doesn’t require potential homeowners to wait two years after a short sale to buy again.
This kind of program would be a matter of good Home $$$s and Sense.
Sue Thompson is owner of HomeTown Realtors in Auburn.
