When does 2 year restriction after short sale clock start? From time sale of the property or the last payment on deficiency?

Neither... it starts when the deed to the property is transferred out of your name... So once the sale is COMPLETED, and the deed is recorded, then the clock start that day... conventional financing is 2 years from the date of deed transfer, and with 10% down. FHA is 3 years with 3.5% down..... The best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

When it comes to speaking about the short sale itself, they will typically require documentation of when you were off title to your property; which should coincide with the date of sale/funding. The problem you're having with your deficiency is that it's "recent activity on a derogatory tradeline." That would be my guess anyway. There is probably some other intricacy in the way that's reported that needs to be clarified. Is it still reporting as activity on your old mortgage account, or are the deficiency payments being reported as a separate collection account? You'll probably have to work to get something corrected or clarified before you can proceed.

Ok.. so that was a big mistake.. I know it seems noble to want to pay on a 2nd after the first is sold, but that's what is costing you time.. you sold the home and it was transferred out of your name, but you still had a "mortgage" that was in default or settled and Fannie/Freddie will use the date of last activity as the clock date... there is nothing you can do as long as that is on your credit report. There are credit restoration specialists that might be able to get that removed from your credit, and if that was the situation, you would be ok.. We recently had a borrower who after a foreclosure, made arrangements to pay a portion of her 2nd, and paid for an additional 3 years.. She was in the very same situation you are in right now... In her situation, we were able to get a credit repair guy to get it removed, and she is now in her new home.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Your dilemma is in how the account is being reported. If the original account remains open (as is likely the case) it doesn't matter whether or not the lender released the collateral. The account is still outstanding and since it was an account that resulted in a foreclosure/shortsale, it will continue to be updated by the creditor until it is gone. The real issue is that the remaining balance you have is now unsecured, but the account is being reported as a secured by real estate account. If you used an attorney in negotiating the short sale (which you should have), enlist his/her help to get the lender to transfer the balance to a new account. This will allow the old account to stop being reported on. If you did not use an attorney, you will likely need to engage one to get the creditor to do the right thing. They likely won't do this on their own because, based on my experience with many lenders, it seems they want to punish you as long as they can. What better way than to create an environment where you can't get another loan. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com ~ 888-889-9950

sale date

It is actually the date your old lender reported the short sale or settled for less on your credit bureau. The Desktop Underwriting system (Fannie Mae) picks up that date as your 2 year marker. I have specialized in after short sale loans the last few years. If you need further assistance give me a call: 888-320-7888 - Ken